SinoPac Holdings SinoPac Holdings Stock Code: 2890 Published Date: February 29, 2020 https://mops.twse.com.tw http://www.sinopac.com
SinoPac Holdings
SinoPac Holdings
Stock Code: 2890
Published Date: February 29, 2020
https://mops.twse.com.tw
http://www.sinopac.com
Contents
Shareholder Contact
SinoPac Securities Corp.
Register & Transfer Agency Dept.
Tel: 886-2-2381-6288
Address: 3F., No. 17, Bo’ai Rd., Taipei City 100, Taiwan (R.O.C.)
Website: https://www.sinotrade.com.tw/stocktransfer
Credit Rating Institutions
Standard & Poor’s Ratings Services
Address: Unit 1, Level 69, International Commerce Centre,
1 Austin Road West, Kowloon, Hong Kong
Tel: 852-2533-3500
Website: https://www.standardandpoors.com
Taiwan Ratings Corp.
Address: 49F., No. 7, Sec. 5, Xinyi Rd., Taipei City 110,
Taiwan (R.O.C.)
Tel: 886-2-8722-5800
Website: https://www.taiwanratings.com
Fitch Australia Pty Ltd., Taiwan Branch
Address: Suite 1306, 13F., No. 205, Tun Hwa N. Rd., Taipei City
105, Taiwan (R.O.C.)
Tel: 886-2-8175-7600
Website: https://www.fitchratings.com
Spokesperson
Kerry Hsu
Tel: 886-2-8161-8935
Website: [email protected]
Acting Spokesperson
Vincent Hsiao
Tel: 886-2-8161-8935
Website: [email protected]
Auditing Certified Public Accountant
Yi-Chun Wu and Cheng-Hung Kuo
Deloitte Taiwan
Address: 20F., No. 100, Songren Rd., Taipei City, 110,
Taiwan (R.O.C.)
Tel: 886-2-2725-9988
Website: http://www.deloitte.com.tw
Name of Overseas Exchange Where Securities
Are Listed and Method of Inquiry: None.
SinoPac Holdings & Its Subsidiaries
SinoPac Financial Holdings Company Limited
Address: 3&5~13F., No. 306, Bade Rd. Sec. 2, Taipei City 104,
Taiwan (R.O.C.)
Tel: 886-2-8161-8935
Website: http://www.sinopac.com
Bank SinoPac Company Limited
Address: No. 36, Nanking East Rd. Sec. 3, Taipei City 104,
Taiwan (R.O.C.)
Tel: 886-2-2517-3336
Website: https://bank.sinopac.com
SinoPac Securities Corporation
Address: 7F., 18F. & 20F., No.2, Sec. 1, Chongqing S. Rd.,
Taipei City 100, Taiwan (R.O.C.)
Tel: 886-2-2311-4345
Website: https://securities.sinopac.com
SinoPac Leasing Corporation
Address: 5F., No. 203, Bade Rd., Sec. 2, Taipei City 104,
Taiwan (R.O.C.)
Tel: 886-2-8161-2395
Website: http://spl.sinopac.com
SinoPac Securities Investment Trust Company
Limited
Address: 13-14F., No. 17, Bo’ai Rd., Taipei City 100,
Taiwan (R.O.C.)
Tel: 886-2-2361-8110
Website: http://sitc.sinopac.com
SinoPac Venture Capital Corporation
Address: 3F., No. 39, Sec. 2, Jinan Rd., Taipei City 100,
Taiwan (R.O.C.)
Tel: 886-2-2393-3315
Website: None
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Contents
Letter to Shareholders
Corporate Profile and Corporate Governance ReportI.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
State of Capital RaisingI.
II.
III.
IV.
V.
VI.
VII.
Overview of Business Operation I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
Financial InformationI.
II.
III.
IV.
V.
VI.
Financial Positions and Performance and Risk ManagementI.
II.
III.
IV.
V.
VI.
VII.
VIII.
Special DisclosureI.
II.
III.
IV.
Appendix
Introduction
Corporate Organization
Directors, President, and Principal Officers
Corporate Governance
Information on Fees for CPAs
Information on Changing CPAs
Chairman, President,or Managers in Charge of Financial or Accounting Affairs Serving
in CPA Firm or Its Affiliate in the Last Year
Change in Equity of Directors, Management, and the Same Person or Related Party
Holding the Same Financial Holding Company's Shares of Voting Rights over the
Statutory Ceiling
Top Ten Shareholders as Related Party
Consolidated Shareholdings in Invested Companies
Stocks and Dividends
Issuance of Corporate Bonds
Issuance of Preferred Shares
Issuance of Depositary Receipts
Employee Stock Options
Mergers with or Acquisitions of Other Financial Institutions
Capital Utilization Plans and Execution Status
Business Overview
Benefits of Cross-Industry and Joint Marketing
Market and Business Overview
Workforce
Corporate Social Responsibility
The Population and the Average and Median Salaries of Full-time Non-managerial
Employees and the Difference of the Three Figures from the Previous Year
Information Equipment
Labor Relations
Major Contracts
Code of Ethical Conduct
Protective Measures for Workplace and Employee Safety
Condensed Five-year Financial Statements
Five-Year Financial Analysis
Key Performance Indicator
Audit Committee’s Review Report
Consolidated Financial Statements and Independent Auditors’ Report
Any Other Matters That Require Reporting
Analysis of Financial Status
Analysis of Financial Performance
Liquidity Analysis
Impact of Material Capital Expenditures on SinoPac Holdings' Finance and Business
Review of Investment Policies
Risk Management
Crisis Management and Response
Other Important Matters
Affiliates
Private Placements of Securities
Holding or Disposal of Shares by Subsidiaries
Necessary Supplements
Consolidated Financial Statements and Independent Auditors’ Report
2
Economy and Market Retrospective 2019
Many uncertainties clouded the global economy in 2019, including escalation of the China-US trade war, Brexit, US-Iran
conflicts, and Hong Kong protests, increasing the probability of an economic downturn. Fortunately, the central banks of
countries around the world put in a joint effort to save the global economy. The US Federal Reserve Board cut the interest rate
a total of 0.75% in July, September, and October, and adopted quantitative easing (QE) in October; the European Central Bank
cut the interest rate by 10 basis points and resumed QE in November; the People's Bank of China adopted both general and
targeted cuts to the reserve requirement ratio, and cut the medium-term lending facility (MLF) interest rate to reduce the cost
of business loans; Australia, New Zealand, Russia, Indonesia, and India also cut interest rates several times throughout 2019, not
only stabilizing their economies, but supporting their strong stock market showings. In 2019, the three major US stock markets
hit record highs, one after another. Taiwan stocks benefited from order transfers as a result of the trade war, 5G development,
and China decoupling its supply chain from US partners. This drew in foreign investors, who purchased a considerable
amount of Taiwan stocks; as a result, the Taiwan Capitalization Weighted Stock Index (TAIEX), led by Taiwan Semiconductor
Manufacturing Company, hit a 29-year high.
In terms of the real economy, the government of Taiwan encouraged businesses
to repatriate funds from China; some businesses relocated their production centers
to Taiwan due to the China-US trade war, which supported the steady growth of
investment. In 2019, overall economic performance was better than expected, with an
annual growth rate of 2.71%, ranking first among the Four Asian Dragons.
Business Strategies and Performance of SinoPac Holdings
Since 2018, SinoPac Holdings has focused on three major themes: Supervision and
Management, Strategic Leadership, and Realization of Synergy. In each area, the
Company has forged ahead, in order, through four phases: Construct, Ascend, Align,
Ahead. This has ultimately created peak profits, realized through all-out efforts
made by the entire organization. In 2019, SinoPac Holdings posted a consolidated
net profit of NT$12.477 billion, a significant increase of 32.34% from the previous
year; if the effect of non-recurring profit and loss is excluded, the consolidated net
profit represents a new high since the establishment of SinoPac Holdings. Earnings
per share after tax reached NT$1.11 and return on equity (ROE) reached 8.60%. At
the end of 2019, net value reached NT$148.4 billion, with net value per share of
NT$13.16, and consolidated assets reached a record high, totaling NT$1.83 trillion,
with an annual growth of 14.22%.
In 2019, SinoPac Holdings implemented the following five operating themes to enhance synergy:
1. Enhance portfolio and raise operational efficiency: SinoPac Holdings strived to improve the return on assets (ROA) and
expand leverage ratios appropriately under sound risk control. ROE also grew significantly in 2019, at nearly 2% over the
previous year. In response to business development needs, SinoPac Holdings prudently reviewed the efficiency of capital
allocation and continuously conducted mergers, acquisitions and liquidations of subsidiaries to improve capital utilization.
In 2019, SinoPac Call Center, SinoPac Life Insurance Agent, and SinoPac Property Insurance Agent were merged into Bank
SinoPac, leading to a reduction in subsidiaries from 29 to 26.
2. Boost fee income: Upholding the customer-first business philosophy, SinoPac Holdings expanded its clientele through
improved customer segmentation and deepened customer relationships, thus boosting fee income. In 2019, Bank SinoPac's
wealth management fee income grew by nearly 20%; SinoPac Securities' pan-wealth management fee income grew by nearly
60%. Bank SinoPac's lending performance was similarly strong, with fee income from loans growing by nearly 50% over the
previous year.
3. Elevate overseas revenues: SinoPac Holdings accelerated overseas deployment in 2019. The Chengdu Branch of Bank
SinoPac (China) officially opened for business, marking the completion of business deployment of Bank SinoPac (China)
across the Yangtze River Delta, Pearl River Delta, the Jingjinji (Beijing, Tianjin and Hebei) Metropolitan Region, and the
Chengdu-Chongqing City Cluster. The Yinchuan Branch of SinoPac Leasing (Tianjin) is progressing well. Bank SinoPac's
Chairman / ONG Wen-Chyi
Fulfillment of a Beautiful Life through Finance
Letter to Shareholders
www.sinopac.com
3
first location in Southeast Asia is the Ho Chi Minh City Branch in Vietnam, supported by SinoPac Leasing's representative
offices in Thailand and Myanmar. At the same time, Bank SinoPac continuously worked with local financial institutions to
extend its business presence and create business opportunities in neighboring countries such as Cambodia. New branches are
currently under preparation. In addition, SinoPac Holdings continued to integrate subsidiaries' overseas business platforms by
establishing a joint operating system in the Guangdong-Hong Kong-Macao Greater Bay Area. Bank SinoPac (China) worked
with Bank SinoPac's Hong Kong and Macao branches to build a cross-border financial service platform to get remarkable
achievements.
4. Accelerate digital transformation: SinoPac Holdings strived to promote digital finance for customers by providing digital
financial services, putting in place innovative financing that integrates vivid ideas for everyday life, accelerating alliances
with third-party partners to expand the application of mobile payments, and deepening cooperation with other industries
through the Partner APIs. Bank SinoPac launched DAWHO digital account product, which ranked fourth on the market a
mere three months after launch; by the end of 2019, DAWHO already had more than 230,000 accounts. Bank SinoPac also
launched a smart wealth management tool, ibrAin, featuring complete historical
performance simulation, to provide customers with highly tailored investment
services. SinoPac Securities and Bank SinoPac jointly launched a digital trading
account service, DAWHO TOU, which leads the industry by allowing customers to
open an account online for securities trading and link it to their deposit account, all
within one hour.
5. Strengthen corporate governance, sustainable development and risk management
frameworks: SinoPac Holdings proactively responded to the international
environmental, social and governance (ESG) trend by establishing the Tax
Governance Policy, Responsible Investment Management Guidelines, and Emerging
Risk Management Guidelines in 2019. The Company was once again included in
the Taiwan Stock Exchange Corporation (TWSE) Corporate Governance 100 Index
and was also selected as a constituent of the FTSE4Good TIP Taiwan ESG Index
for a third time in a row, showing that SinoPac Holdings was in the industry-
leading group in terms of corporate governance and corporate social responsibility.
In addition, SinoPac Holdings strengthened three lines of defense to enhance its
internal controls. To continuously strengthen the capability of identifying and
monitoring business risks, Bank SinoPac applied for the adoption of a risk-based
internal audit system and received approval from the competent authority well
ahead of the given time limit.
Business Strategies and Performance of Major Subsidiaries
Bank SinoPac is committed to putting customers first and developing local services. In 2019, Bank SinoPac posted a
consolidated net profit of NT$10.291 billion, earnings per share after tax of NT$1.20, and ROE of 7.83%. In terms of business
scale, Bank SinoPac actively adjusted the structure of deposits and loans. At the end of 2019, Bank SinoPac's consolidated assets
totaled NT$1.70 trillion, an increase of NT$210.5 billion over the previous year; deposits totaled NT$1.39 trillion and loans
totaled NT$1.01 trillion, with annual growth rates of 16.05% and 8.70%, respectively; the loan-to-deposit ratio reached 73.10%.
In step with technological advancements and market demand, in 2019, Bank SinoPac launched DAWHO digital account, and
ibrAin smart wealth management tool, to provide on-demand, easy-to-use, secure financial tools. Bank SinoPac actively trades
a wide array of financial instruments in Taiwan and other Asia markets. Bank SinoPac's well-established and comprehensive
platforms for FX, interest rate products, and derivatives thereof make it one of the key market makers among domestic banks.
SinoPac Securities continued to promote financial innovation and fully integrated financial services via its suite of specialized
services and market-leading strategies. In 2019, SinoPac Securities grew its consolidated net profit after tax to NT$1.904
billion, its EPS after tax to NT$1.17, and its ROE by 294% from the previous year to a 10-year high of 7.10%. In terms of
market share, SinoPac Securities' ranking in the core brokerage business remained steady; the turnover of sub-brokerage business
grew to rank second in the market; and assets under management (AUM) increased 33% from the year before to a new high of
NT$18.2 billion, ranking third in the marketplace. Benefiting from the rise in stock and bond prices, profits from proprietary
President / Stanley CHU
ANNUAL REPORT 2019
4
trading — warrants, exchange traded fund (ETF) market making, and bonds — increased significantly in 2019 from the year
before. SinoPac Securities continued to promote digital finance through the expanded integration of digital accounts and the
launching an online AI-based wealth management platform. By providing comprehensive digital financial services ranging from
Taiwan stock trading to overseas sub-brokerage to a diverse clientele ranging from small-scale stockholders to high-net-worth
wealth management clients, SinoPac Securities has transformed itself into a digital wealth management service provider.
SinoPac Leasing focused on its core business by actively expanding leasing services for small and medium enterprises (SMEs)
at home and abroad, and continuing to expand business operations in Taiwan and China. In response to changes in the broader
industrial structure, and based on demand for business transformation and innovation, SinoPac Leasing provided specialized,
flexible installments and financial leasing services. In 2019, SinoPac Leasing posted a consolidated net profit of NT$310 million,
earnings per share after tax of NT$0.66, and ROE of 6.99%; at the end of 2019, consolidated assets totaled NT$19.1 billion.
SinoPac Leasing consolidated its services across regions and industries, and strengthened risk control across different customer
segments, to achieve its business goals in a steady manner.
Strong Capital Structure and Record-high Credit Ratings
SinoPac Holdings had a stable capital adequacy ratio (CAR), reaching 117.76% at the end of 2019. Bank SinoPac maintained a
strong consolidated Bank for International Settlements (BIS) CAR, with 14.27% at the end of 2019. Bank SinoPac's asset quality
also continued to be outstanding; the non-performing loan ratio was a mere 0.21% at the end of 2019, a decrease of 0.04% over
the previous year, and the debt coverage ratio reached 638.55%.
After Taiwan Ratings and Standard & Poor's both raised the credit rating of SinoPac Holdings in 2018, Fitch Ratings also
raised SinoPac Holdings' credit rating in 2019. This shows that SinoPac Holdings has a high degree of integration in risk
management and business strategies, which has improved business performance and the practice of corporate governance,
earning SinoPac Holdings external approval. The results of the latest credit ratings are summarized below:
Fulfillment of Corporate Social Responsibility
Upholding four major sustainable development missions and policies, namely "Ethical Management, Wealth Management,
Environmental Sustainability, and Social Prosperity," SinoPac Holdings continued to express long-term local care and perform
its corporate social responsibility. By integrating group-wide resources, SinoPac Holdings took specific action to give back to
customers, shareholders, and society, thereby achieving a triple-win outcome.
In response to the Earth Day — A Million Acts of Green program organized by the Taiwan Environmental Information
Association in 2019, SinoPac Holdings called on the public and employees to take more than 1 million green acts in Taiwan.
The various subsidiaries recruited volunteers for beach cleanup and environmental education activities. Examples include Bank
SinoPac organizing beach cleanup gatherings in northern, central and southern Taiwan, and organizing a SinoPac Green Market
at Huashan 1914 Creative Park; SinoPac Securities organizing the Big Change for Bottles event to promote recycling by
turning waste bottles and jars into cute piggy banks, and working with the Yunlin Branch of the Taiwan Fund for Children and
Families to promote the Sustainable Oceans – Fish Forever marine education activity to make sustainable ocean use a reality
and help protect Mother Earth. SinoPac Leasing held an event to collect second-hand children's books and distribute them to
elementary schools in need. SinoPac Securities Investment Trust (SinoPac SITC) worked with the Hualien Center for Indigenous
Children and Youths to teach indigenous children how to make Taroko traditional musical instruments. For a moment, they put
away plastic and electronic toys to help ensure that the legacy of the mouth harp is not lost.
In 2019, SinoPac Holdings once again worked with the Children Are Us Foundation to initiate the lunchbox project, where
employees voluntarily donated more than 20,000 lunchboxes and NT$3 million within two weeks. This project empowered
children with intellectual and developmental disorders to work while providing care for remote areas. For six consecutive years,
Bank SinoPac has been the title sponsor of the Simple Life Festival, which enables participants to do what they love and make
it worthy. Bank SinoPac created digital banking experiences at the festival to deliver the message that "banking is simple" and
to help young people achieve their dream of becoming entrepreneurs. For six years in a row, Bank SinoPac has also sponsored
Type of Credit Rating Credit Rating Institution Date of Credit Rating
Standard & Poor's
Fitch Ratings
Fitch Ratings
Taiwan Ratings
International
Domestic
August 16, 2019
September 5, 2019
August 16, 2019
Short-term Credit Rating
Long-term Credit Rating
BBB
BBB+
AA-(twn)
twA+
A-2
F2
F1+(twn)
twA-1
Stable
Stable
Stable
Outlook for Credit Rating
5
SinoPac Legacy Taipei, a music performance event held in Huashan 1914 Creative Park, providing a stage for young performers
to realize their dreams. It also sponsored the Taipei Bboy City for the second year in a row to encourage young people to
express themselves on an international stage. Bank SinoPac supported the national team to participate the 2022 FIFA World Cup
qualification in Asia and sponsored the first NCCU Griffins Cup Invitational. Bank SinoPac sponsored the Collaboration between
Arts and Other Sectors—Outreach Aesthetic Education Project organized by the National Kaohsiung Center for the Arts in
2019, allowing children to experience aesthetic education that goes beyond the textbook at an international art venue. Through
Project performances, wealth management volunteers taught children knowledge of wealth management in hopes of guiding
children to dream big. Bank SinoPac has sponsored the Taipei Children's Arts Festival organized by the Taipei City Government
Department of Cultural Affairs for twelve consecutive years. Bank SinoPac continued to give children spaces full of happiness
and imagination. Not only did this transmit the message of working hard to make art a part of one's life from an early age, it also
strongly supported local art performances in hopes of making Taiwan a better place through art.
As for the promotion of education, Bank SinoPac has also initiated a three-year industry-academia collaboration with National
Cheng Kung University, which incorporated the university's R&D capabilities and talent cultivation to create the first Financial
AI Technology Center in Taiwan. By combining financial big data and deep-learning techniques, new applications for FinTech
have been developed. Bank SinoPac has also introduced AI to credit investigations and chosen National Cheng Kung University
as its future financial life lab. To cultivate talent, Bank SinoPac has provided scholarships for more than a hundred students in
the fields of information engineering, medicine, business administration, and finance and accounting for three consecutive years.
Recognition and Awards for the Customer-first Business Philosophy
SinoPac Holdings' efforts at promoting sustainable finance, integrated service, and corporate social responsibility have won broad
praise. In 2019, SinoPac Holdings received the Asia Responsible Entrepreneurship Awards 2019-Social Empowerment Award
from Enterprise Asia and won six major awards in the Taiwan Corporate Sustainability Awards from the Taiwan Institute
for Sustainable Energy, which demonstrates how remarkable the results of SinoPac Holdings' sustainability disclosures have
been. Bank SinoPac received the gold in the 3rd CSR Impact Awards from PricewaterhouseCoopers Sustainability Services
Company and won both the Highly Recommended Best Initiative in Social Responsibility-Highly Recommended and the Best
Initiative in Environmental Responsibility-Highly Recommended awards in The Asset ESG Corporate Awards. Bank SinoPac's
cooperation with customers in promoting renewable energy and building a sustainable homeland won the Best Green Financing
Award from Excellence magazine and the Best Financial Services Provider Award under the Top Solar System Award from the
Ministry of Economic Affairs Bureau of Energy. SinoPac Securities won first place in the Best in ESG Award at the 13th Wealth
Management Banks and Securities Firms Evaluation conducted by Business Today; SinoPac Securities also won the Outstanding
Green Investment Award in the 15th Golden Goblet Awards for its remarkable achievements in the underwriting of green bonds.
SinoPac Holdings continued to apply technologies to financial products and services, in hopes of bringing brand-new financial
experiences to customers. Bank SinoPac was awarded for Best Retail Digital Payments Experience, Most Innovative ATM Project,
and Most Innovative Corporate Payment Project in The Asset's Triple A Digital Awards; Best Business Model Innovation and
Best Product Innovation by Business Next; Taiwan Domestic Technology & Operations Bank of the Year by Asian Banking &
Finance; and won the Outstanding ACH Specific Project Promotion Award from Taiwan Clearing House. SinoPac Securities
received the Innovative Design of the Year Award at the 15th Golden Torch Awards; a Top 10 Outstanding Commodities Award
at the 19th Golden Peak Awards; and a Best Digital Financial Services Award in the 2019 Securities Company Evaluation
organized by Excellence magazine for SinoPac Securities' innovative digital financial services.
Bank SinoPac's deepened customer services and assistance to businesses expanding into overseas markets won the Outstanding
Award for Growth in New Southbound Country Financing from the Overseas Credit Guarantee Fund (Taiwan). Bank SinoPac also
received the Golden Inquiry Award from the Joint Credit Information Center for the completeness and accuracy of its corporate
information. SinoPac Securities' wealth management excellence earned it third place in the Best Smart Financial Management
Award and third place in the Best Seniors Service Award, as part of the 13th Wealth Management Banks and Securities Firms
Evaluation conducted by Business Today, as well as the Best Wealth Management in Securities, Best Wealth Value Added in
Securities, and Best Sales Team in Securities in the 2019 Wealth Management Awards from Wealth Magazine. SinoPac Securities
was also awarded for Excellence in Broker Service in the 2019 Taiwan Financial Awards for a second year in a row and received
the Best Wealth Management Award in the 2019 Securities Company Evaluation organized by Excellence magazine.
SinoPac Holdings achieved outstanding performance in its financial services. In 2019, Bank SinoPac received five trading-related
awards from Refinitiv, including Top 5 High Trading Volume Bank, Top CNH (Spot) Entity, Top CNH (Spot) Trader, Top FX
Swap Entity, and Top FX Swap Trader. In addition, Refinitiv named Bank SinoPac as the FX Regulation Adoption Entity. The
SinoPac Securities fixed income team again received the Excellent Central Government Bonds Market Maker award from the
Corporate Profile and CorporateGovernance Report
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
Shareholders
ANNUAL REPORT 2019
6
Chairman
ONG Wen-Chyi
President
Stanley CHU
Taipei Exchange (TPEx). In The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards 2019, Bank
SinoPac was awarded Best Derivative Product Client Trading Institution - Highly Commended in Taiwan; and SinoPac Securities
was awarded both Best ETF Market Maker, Taiwan, and Best Equity Derivatives House - Highly Commended, Taiwan. SinoPac
Securities was also awarded first place in Top Sellside Firms in the Secondary Market - Government Bonds, Taiwan, and second
place in Top Arrangers - Investors' Choice for Primary Issues - Government Bonds, Taiwan in The Asset Benchmark Research
Awards 2019.
SinoPac Securities also continued to receive awards for its various services. The SinoPac Securities brokerage business took
first place in the ETF Ratio Award and third place in the Taiwan Equity ETF Award in the TWSE's ETP trading and market
making Competition; SinoPac Securities' strategic trading won the first place in the Taiwan ETF Market Making Award; SinoPac
Securities' electronic trading won the Outstanding Contribution Award and API Promotion Award in the TWSE's Electronic
Trading Competition; and SinoPac Securities' futures and options trading won second place in the Futures Introducing Broker
Trading Volume Diamond Award in the Taiwan Futures Exchange's fifth-annual Diamond Awards. In investment banking,
SinoPac Securities' TWSE/TPEx listing consultation services received second place in the TWSE's Negotiable Securities Award for
Underwriters. In the TPEx's Market Awards, SinoPac Securities' warrant services won a third place in Warrants Issuers Award.
SinoPac Leasing continuously expanded its business presence across regions and industries, and provided customers a diversity
of financial leasing services, which continued to receive widespread praise. With outstanding performance in 2019, SinoPac
International Leasing Corp. received the Jiangsu Province Financial Leasing Company of the Year award from the Financial
Leasing Industry Association of Jiangsu Province for a third year in a row, showing that the leasing division delivered excellent
performance within China's leasing industry.
The asset management capabilities of SinoPac SITC were highly recognized, winning awards at the 2019 Benchmark Fund of
the Year Awards for the third year in a row: Best Performance in both the Technology Sector and the Greater China Equity;
Outstanding Performance in both the China Equity and the Taiwan SME Equity. The research and development team of SinoPac
SITC performed well in strengthening and stabilizing investment portfolios, winning SinoPac SITC a Top 10 Outstanding
Product award at the 19th Golden Peak Awards.
Business Outlook and Strategies for 2020
Looking to 2020, there are various uncertainties all over the world; however, Taiwan has benefited from the transfer of supply
chains and increased reinvestment in Taiwan by some manufacturers, increasing production capacity in Taiwan. In addition,
domestic semiconductor manufacturers are continuing to expand their advanced processes. More and more investments in 5G
and offshore renewable energy such as wind farms are also being made. We expect that investment will continue to support
moderate growth for Taiwan's economy in 2020.
In readiness for the ever-changing domestic and international business environments, SinoPac Holdings will focus on five
operating themes in 2020: (1) Enhancing portfolios by adjusting the structure of assets and liabilities; (2) boosting fee income
by improving product design, expanding wealth management for high-net-worth customers, and continuing to develop the
sub-brokerage business; (3) accelerating overseas revenues through localization, initiatives, cross-border services, and cross-
selling; (4) focusing on development of the SinoPac digital brand through cross-industry cooperation, big data and AI; and (5)
strengthening corporate governance, sustainable development, and risk control by participating in international ESG initiatives
and the Task Force on Climate-Related Financial Disclosure (TCFD), while also overseeing the continued strengthening of
subsidiaries' risk databases, to maximize profits while applying appropriate risk controls. At the same time, SinoPac Holdings
will continuously follow political and economic trends and opportunities for financial openness; comply with government policies
and laws; and adjust business strategies in a timely manner.
Looking into 2020, SinoPac Holdings will adhere to our customer-first business philosophy and provide a full range of forward-
looking, local financial services, seamlessly, through both offline and online channels. Upholding the core value of "fulfillment
of a beautiful life through finance," the Board of Directors, management, and employees of SinoPac Holdings are committed to
providing better customer experiences, enhancing shareholder value, and living up to shareholders' high expectation.
www.sinopac.com
7
I. Introduction
SinoPac Holdings Co., Ltd. (SinoPac Holdings, the Company) was established on May 9, 2002 (stock code: 2890). Its
subsidiaries involve in the finance industries such as banking, securities, investment trust, leasing, and venture capital. SinoPac
Holdings maintains overseas service locations in Hong Kong, Macao, Nanjing, Shanghai, Guangzhou, Chongqing, Chengdu,
Tianjin, Dongguan, Kunshan, Xiamen, Vietnam, Thailand, Myanmar, Los Angeles, and London, and so on.
SinoPac Holdings was formed through a merger Bank SinoPac with National Securities, the first successful integration between
a banking institution and a securities firm in the history of Taiwan's financial services industry. In 2005, SinoPac Holdings
approved a share swap transaction with the International Bank of Taipei to make the latter a wholly owned subsidiary. On July
20, 2006, SinoPac Holdings changed its Chinese name to Yong Feng Holdings. The merger of Bank SinoPac and International
Bank of Taipei was completed in the same year. Bank SinoPac's main businesses include corporate banking, personal banking,
wealth management, financial services, and electronic banking. Bank SinoPac has 125 branches in Taiwan including 83
branches in the Greater Taipei area and it has established service locations in major metropolitan areas in the Central and
Southern Regions as well as Hualien and Kinmen.
Bank SinoPac has actively expanded its service networks across the globe and it has 3 service locations in Hong Kong,
Kowloon, and Macao. Bank SinoPac's Mainland subsidiary, Bank SinoPac (China), officially launched its business in 2014. It is
the first Taiwanese bank in Mainland China. It currently consisted of three branches-Shanghai, Guangzhou and Chengdu branch.
Bank SinoPac has also established a service network of 10 locations along the Pacific Rim in areas including California, United
States and Vietnam to Provide comprehensive services for customers.
SinoPac Securities Corp. (SinoPac Securities), established in 1988, was the first securities company in Taiwan to list on
Taiwan's over-the-counter (OTC) market. SinoPac Securities' services include stockbroking, proprietary trading, underwriting,
international business, fixed income, and new financial products, among others. SinoPac Securities is one of Taiwan's leading
integrated securities companies with 47 service locations in Taiwan and a overseas service locations in Hong Kong, Shanghai,
and London. It offers a broad range of products and services, all of which are ranked at or near the top within Taiwan's
securities industry. Recent mergers and acquisitions (M&A) milestones include SinoPac Securities' merger with Pacific Securities
in November 2012 and its merger with BEA Wealth Management Services (Taiwan) Ltd. in March 2016. SinoPac Securities'
subsidiary SinoPac Securities (Cayman) Holdings Ltd. acquired Hong Kong-based Tung Shing Holdings Company Ltd. in April
2016. In September 2016, SinoPac Securities accepted the transfer of IBT Securities' brokerage business, business equipment,
and the net assets of its margin trading and short selling accounts, providing a catalyst to improve SinoPac Securities'
brokerage market share and profitability for the benefit of its shareholders.
SinoPac Leasing Corp. (SinoPac Leasing) has actively expanded across Asia Pacific since its establishment in September 1997.
In China, it established a wholly-owned finance leasing company, SinoPac International Leasing Corporation, in Nanjing in
July 2011; it established SinoPac Leasing (Tianjin) Co., Ltd. in Tianjin in 2013. It has service locations in Nanjing, Kunshan,
Dongguan, Xiamen, Tianjin, and Chongqing with a diversity of services offered to customers, including financial leasing, leasing,
factoring and trade financing. In Southeast Asia, SinoPac Leasing has established offices in Myanmar and Thailand since 2015
to promptly grasp business opportunities and to provide services for Chinese businesses in the Southeast Asian market.
SinoPac Securities Investment Trust Co., Ltd. (SinoPac Securities Investment Trust) was established in 1997, providing
diversified and innovative mutual fund, private placement fund, and discretionary Investment products and services. In 2014,
SinoPac Securities Investment Trust formed a joint ventures asset management company with Xiamen International Trust Co.,
Ltd. in China, which was named Golden Trust SinoPac Fund Management Co., Ltd. In 2019, SinoPac Securities Investment
Trust mutual fund products have excellent performance and obtained BENCHMARK Fund of the Year Award-Taiwan for three
consecutive years, and Golden Peak Award of Outstanding Product of the Year for first Year.
Corporate Profile and Corporate Governance Report
ANNUAL REPORT 2019
8
SinoPac Leasing Co.
Investment AmountNT$3,654
100%
SinoPac Venture Capital Corp.
Investment AmountNT$2,000
100%
SinoPacSecurities Corp.
Investment AmountNT$18,267
100%
SinoPac SecuritiesInvestment Trust
Co., Ltd.Investment Amount
NT$2,298100%
SinoPacHoldings
Bank SinoPac
Investment AmountNT$75,400
100%
Chairman
Management Committee
Honor Reward/PenalityEvaluation Committee
Information SecurityCommittee
RemunerationCommittee
Audit Committee
President
Secretariat
Audit Division
Ethical CorporateManagement Committee
Risk ManagementDivision
Sustainable DevelopmentCommittee
Legal & ComplianceDivision
President Office
Board of Directors
General Shareholders’Meeting
Oth
er S
ub
sid
iarie
s
Sin
oP
ac
Se
cu
rities
Ba
nk
Sin
oP
ac
Finance Management Division
Operation Management Division
RiskManagement Division
Digital & Technology Division
Human Resources Division
Chairman
Management Committee
Honor Reward/PenalityEvaluation Committee
Information SecurityCommittee
RemunerationCommittee
Audit Committee
President
Secretariat
Audit Division
Risk ManagementDivision
Sustainable DevelopmentCommittee
Legal & ComplianceDivision
President Office
Board of Directors
General Shareholders’Meeting
Oth
er S
ub
sid
iarie
s
Sin
oP
ac
Se
cu
rities
Ba
nk
Sin
oP
ac
Finance Management Division
Operation Management Division
RiskManagement Division
Digital & Technology Division
Human Resources Division
Ethical CorporateManagement Committee
February 29, 2020; Unit: NT$ million
II. Corporate Organization
(I) SinoPac Holdings and Its Subsidiaries
(II) SinoPac Holdings' Organizational and Management Structure
Note:Head of Legal & Compliance Division is concurrently serving as Chief Compliance Officer
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
9
(III) Duties and Functions of Major Divisions
1. President: In charge of formulating the business strategy of SinoPac Holdings, overseeing business performance,
monitoring and coordinating the management of subsidiaries; serving as the representative of the management team;
empowered to appoint managerial chiefs in charge of various affairs of SinoPac Holdings in response to business needs;
assisted by the President Office with handling confidential information; and managing and maintaining the corporate
image, corporate sponsorship, and other public affairs and media relations.
2. Finance Management Division: Led by the Chief Financial Officer (CFO) to be in charge of managing and maintaining
investor relations; analyzing political and economic situations, industry dynamics and financial environments at home
and abroad; financial planning; fund procurement; capital planning and liability management; evaluating and executing
M&A and major investment strategies; acquiring and disposing of stakes for direct equity investments; credit rating;
accounting and taxation; budgeting; performance analysis; and supervising and assisting subsidiaries in the planning and
integration of financial accounting.
3. Operations Management Division: In charge of managing the overall business strategy; following up key performance
indicators (KPIs) of subsidiaries; coordinating and facilitating cross-selling among subsidiaries; controlling and accepting
major capital expenditures; asset revitalization management; administration and documentation; environment, health, and
safety (EHS), and general affairs; and supervising and assisting subsidiaries in the planning and integration of business
operation.
4. Digital & Technology Division: In charge of managing digital finance development strategies; integrating information
resources; and supervising and assisting subsidiaries in the planning and integration of digital finance.
5. Human Resources Division: In charge of managing human resources; and supervising and assisting subsidiaries in the
planning and integration of human resources.
6. Risk Management Division: In charge of planning, supervising and managing risk management policies and control
mechanisms; analyzing and disclosing major business risks; supervising the capital adequacy ratio; disclosing and
responding to major incidents; and supervising and assisting subsidiaries in the planning and integration of risk
management.
7. Legal & Compliance Division: In charge of handling regulatory compliance; legal matters; statutory research and
consultation; related party management; material information management; personal information protection; anti-money
laundering (AML) management; and supervising and assisting subsidiaries in the planning and integration of legal &
compliance.
ANNUAL REPORT 2019
10
III. Directors, President, and Principal Officers
(I) Board of Directors
February 29, 2020Board of Directors
Hsinex International Corp. /
ONG Wen-Chyi
SCHIVE Chi
James J. SHEU
YFY Inc. / CHIU Cheng-
Hsiung
77,001,133
0
0
443,767,312
3
3
3
3
0.72%
0
0
4.15%
1.56%
0
0
4.15%
0
0
0
0.00%
0
0
0
0
0
0
0
0
175,489,715
0
0
468,485,150
2017/06/14
2017/06/30
2017/06/14
2017/06/14
2017/06/14
0
0
0
380,495
Chairman, Chunghwa Post Co., Ltd.
Representative (Ambassadorial
ranking), Taipei Economic and
Cultural Center in India
Director, Taiwan's Financial
Supervisory Commission, Office
in New York
Counsellor, Permanent Mission of
Taiwan to the WTO (Geneva)
Professor, Department of Finance,
National Chengchi University
BA, International Relations, Dept.
of Political Science, National
Taiwan University
Minister without Portfolio,The
Executive Yuan, R.O.C.
Chairman of Taiwan Stock
Exchange Corporation
Ph. D. ,Case Western Reserve
University
President of China Trust Financial
Holding Co., Ltd.
MBA, The Wharton School of the
University of Pennsylvania, USA
Vice Premier, Executive Yuan
Ph. D. in Economics, Ohio State
Chairman
Independent
Director
Independent
Director
Director
None
None
None
None
None
None
None
None
None
None
None
None
Director of Bank SinoPac
Director of Taiwan Corporate
Governance Association
Director of Center for Corporate
Sustainability
Independent Director of SinoPac
Securities Corp.
Independent Director of Asia
Cement Corp.
Director of Pegatron Corporation
Director of the Eisenhower
Fellows Association in the
Republic of China
Director of Yu Chi-Chung Cultural
& Educational Foundation
Director of China Foundation for
the Promotion of Education and
Culture
None
Chief Consultant of SinoPac
Holdings
Chairman of Yu Guohua Culture
and Education Foundation
Director of Cross-Straits Common
Market Foundation
Director of Foundation of Pacific
Basin Financial Research and
Development
Director of Foundation of
Chinese Culture for Sustainable
Development
Director of NTU Economic
Research Foundation
Director of China Foundation for
the Promotion of Education and
Culture
Director of Felix S.Y. Chang
Memorial Foundation
Director of the Eisenhower
Fellows Association in the
Republic of China
Director of Taiwan Fulbright
Alumni Association
Shares Owned Currently (Note)
Shares Owned by Spouse & Minors (Note)
Shares Held under Surrogate A/C Education & Key
Past PositionsPositions Held Concurrently
Shares Owned when Elected Name
Term(Year)
Elected Date
FirstElected
Title
Title Name Relationship No. of Shares % No. of Shares % No. of Shares % No. of Shares %
2008/06/06
2017/06/30
2014/06/12
2014/06/12
2005/05/11
2010/06/25
Related to Directors and Supervisors
Male
Male
Male
Male
Gender
R.O.C.
R.O.C.
R.O.C.
R.O.C.
Nationality or Place of Registration
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
11
None
None
None
None
YFY Inc. / Stanley CHU
YFY Inc. / YEH Chi-Hsing
CHEN Chia-Hsien
Hsinex International Corp./
HO Yi-Da
443,767,312
443,767,312
743,585
77,001,133
3
3
3
3
4.15%
4.15%
0.01%
0.72%
4.15%
4.15%
0.01%
1.56%
0
0
0.01%
0.56%
0
0
0
0
0
0
0
0
468,485,150
468,485,150
785,002
175,489,715
2017/06/14
2017/12/05
2017/06/14
2018/05/01
2017/06/14
2017/06/14
0
0
734,608
62,666,833
Chairman, Cathay Securities
Corporation
Spokesman and Senior Executive
Vice President, Taiwan Stock
Exchange Corporation
Senior Executive Vice President,
Taiwan Futures Exchange
EMBA, National Taiwan University
General manager of Goods Come
Co., Ltd.
Chief operating officer of
PChome eBay Co., Ltd.
The prosecutor served in Ministry
of Justice and Taiwan New
Taipei District Prosecutors
Office
Juris Master from Soochow
University
Bachelor of Electronics
Engineering, National Chiao Tung
University
Chairman of SinoPac Call Center
Co., Ltd.
MBA, University of Virginia
Chairman and President of Yuen
Foong Yu Consumer Products
Co., Ltd.
MBA, MIT Sloan School of
Management
Director
Director
Director
Director
None
None
None
None
None
None
None
None
Director of The Ohio State
University Alumni Association of
Taiwan
Director of NTU Alumni
Association
Director of Taipei NTU Alumni
Association
Vice Chairman of Cross-Strait CEO
Summit
President of SinoPac Holdings
Chairman of SinoPac Securities
Corp.
Director of Bank SinoPac
Director of Taiwan Stock Exchange
Corporation
Director of National Performing
Arts Center
Founder and Managing Partner of
DaVinci Personal Data and High
Tech Law Firm
Representative of DaVinci
Management Consulting firm Co.,
Ltd.
Supervisor of Taiwan Internet and
E-Commerce Association (TiEA)
Director of End Child Prostitution,
Child Pornography & Trafficking
of Children for Sexual Purposes
(ECPAT)
Director of Taiwan Technology
Industry Legal Officers
Association
Director of Taiwan Cyber Security
Alliance
Chairman of Bank SinoPac
Chairman of YFY Inc.
Director of Jupiter Prestige Group
Holding Limited
Chairman of Willpower Industries
Limited
Chairman of Yuen Foong Yu Paper
Enterprise (Vietnam) Company
Limited
Chairman of YFY Jupiter (BVI) Inc.
Director of YFY Biopulp
Technology Ltd.
Director of YFY RFID Co., Ltd.
Director of Chung Hwa Pulp Corp.
Director of YFY Packaging Inc.
Chairman of Yuen Foong Yu
Consumer Products Co., Ltd.
Chairman of Ever Growing
Agriculture Bio-tech Co., Ltd.
Shares Owned Currently (Note)
Shares Owned by Spouse & Minors (Note)
Shares Held under Surrogate A/C Education & Key
Past PositionsPositions Held Concurrently
Shares Owned when Elected Name
Term(Year)
Elected Date
FirstElected
Title
Title Name Relationship No. of Shares % No. of Shares % No. of Shares % No. of Shares %
2005/05/11
2017/12/05
2005/05/11
2018/05/01
2005/08/03
2008/06/06
2011/06/24
Related to Directors and Supervisors
Male
Male
Male
Male
Gender
R.O.C.
R.O.C.
R.O.C.
R.O.C.
Nationality or Place of Registration
ANNUAL REPORT 2019
12
Note1: "Shares Owned Currently" and "Shares Owned by Spouse and Minors" are data compiled as of December 31, 2019. For representative of an institution, "Shares Owned by Spouse and Minors"
include that owned by the representative.
Note2: The Company's Chairman and President or personnel with equivalent position (chief manager) are not the same person, spouses or relatives within one degree of kinship.
Note3: Since February 1,2020, Mr. TSAI Ying-Yi has resigned as independent director of the Company.
Chairman of Yuen Foong Shop Co.,
Ltd.
Director of Livebricks Inc.
Director of E Ink Holdings Inc.
Director of eCrowd Media Inc.
Chairman of Arizon RFID
Technology Co., Ltd.
Director of Arizon Japan Co., Ltd.
Chairman of YFY Packaging
(Yangzhou) Investment Co., Ltd.
Director of Yuen Foong Yu Paper
MFG (Yangzhou) Co., Ltd.
Chairman of YFY Investment Co.,
Ltd.
Chairman of YFY Cayman Co., Ltd.
Director of YFY Mauritius Corp.
Director of Yuen Foong Yu
Consumer Products Co., Ltd.
Director of YFY Japan Co.,Ltd.
Director of Yuen Foong
International (Samoa) Ltd.
Director of Artone Investment
(H.K.) Ltd.
Director of Shin-Yi Enterprise Co.,
Ltd.
Director of Yuen Foong Paper Co.,
Ltd.
Chairman of Yuen Foong Co., Ltd.
Director of Fu Hwa Enterprise Co.,
Ltd.
Director of Chen Yu Co., Ltd.
Director of The Eisenhower
Fellows Association in the
Republic of China
Director of Epoch Foundation
Chairman of Taiwan Paper Industry
Association
Director of Monte Jade Taiwan
Science & Tech Association
Chairman of Association of
Corporate Patent Executives
Shares Owned Currently (Note)
Shares Owned by Spouse & Minors (Note)
Shares Held under Surrogate A/C Education & Key
Past PositionsPositions Held Concurrently
Shares Owned when Elected Name
Term(Year)
Elected Date
FirstElected
Title
Title Name Relationship No. of Shares % No. of Shares % No. of Shares % No. of Shares %
Related to Directors and SupervisorsGender
Nationality or Place of Registration
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
13
Note: "Major shareholders" mean the top ten shareholders in terms of shareholding percentage of the corporation.
S.C. Ho (53.13%), Yi Chia Ho (24.48%), HO Yi-Da (22.28%), Chen Yu Co., Ltd. (0.11%)
S.C. Ho (10.16%), Shin-Yi Foundation (5.66%), Shin-Yi Enterprise Co., Ltd. (4.69%), Cheng Ting Ho (2.80%),
YFY Inc. Labor Retirement Reserve Supervisory Committee (2.79%), Mei Yu Ho (2.66%), NEW TALENT LIMITED
(2.28%), HO Yi-Da (2.14%), Min Ting Ho (2.07%) ,Hsinex International Corporation (1.87%)
Hsinex International Corporation
YFY Inc.
Name of Corporate Shareholder Major Shareholders of Corporate Shareholder (Note)
December 31, 2019Major Shareholders of Corporate Shareholder (Table A)
December 31, 2019Major Shareholders of Major Shareholders of Corporations in Table A (Tier-2 Corporate Shareholders)
Chen Yu Co., Ltd.
Shin-Yi Foundation
Shin-Yi Enterprise Co., Ltd.
NEW TALENT LIMITED
Name of Tier-2 CorporateShareholder (Note 1)
Major Shareholders of Tier-2 Corporate Shareholder (Note 2)
S.C. Ho (70.75%), Yi Chia Ho (22.92%), HO Yi-Da (6.33%)
Founded in 1971, major shareholders: HE Chuan, HE Shou-Shan, S.C. Ho, HE LIN Fu-Hsiang, SUN Yieh, Yuen
Foong Yu Paper Mfg. Co.,Ltd. (before listing), Shin-Yi Enterprise Co., Ltd.
S.C. Ho (27.84%), Jucheng Investment & Management Co., Ltd. (12.50%), BRILLIANT PRIDE LIMITED
(12.50%), Gao Da Global Ltd. (12.50%), Mei Yu Ho (12.50%), Guan Yu Investment Co., Ltd. (5.91%), Tasi
Hui Shin Ho (2.48%), Richard Ho (2.18%), Jin Jie Investment Ltd. (1.52%), Hoss Educational Foundation
(1.48%), Hoss Cultural Foundation (1.48%)
Modern Victory Limited (100.00%)
Note 1: "Tier-2 corporate shareholders" mean the major shareholders of corporate directors and supervisors of SinoPac Holdings.
Note 2: "Major shareholders" mean the top ten shareholders in terms of the shareholding percentage of the corporation.
ANNUAL REPORT 2019
14
Note: Please mark the field "3" if a Director meets the following conditions in two years prior to the nomination and during his/her term of service..
1. Not employed by SinoPac Holdings or an affiliate.
2. Not a director or supervisor of SinoPac Holdings or its affiliate. This restriction does not apply to where the person is concurrently an independent director of SinoPac Holdings and its parent
company or subsidiary or any subsidiary of the same parent company as appointed in accordance with the Securities and Exchange Act or the laws of the country of the said company.
3. Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of 1% or
more of the total number of outstanding shares of SinoPac Holdings or is ranked in the top 10 in shareholdings.
4. Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of any of the managerial officers in the first subparagraph or the persons in the
second and third subparagraphs.
5. Not a director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the total number of issued shares of SinoPac Holdings, of a corporate shareholder that ranks
among the top five in shareholdings, or of a corporate shareholder that elects its authorized representative as a director or supervisor of SinoPac Holdings. This restriction does not apply to cases
where the person is concurrently an independent director of SinoPac Holdings and its parent company or subsidiary or any subsidiary of the same parent company as appointed in accordance with
the Securities and Exchange Act or the laws of the country of the said company.
6. Not a director, supervisor, or employee of a company who is a director of SinoPac Holdings or holds the majority of the voting shares. These restrictions do not apply to cases where the person
is concurrently an independent director of SinoPac Holdings and its parent company or subsidiary or any subsidiary of the same parent company as appointed in accordance with the Securities and
Exchange Act or the laws of the country of the said company.
7. Not a director, supervisor, or employee of a company or institution who is the Chairman, President or a person with an equivalent position of SinoPac Holdings or a spouse thereof. This restriction
does not apply to cases where the person is concurrently an independent director of SinoPac Holdings and its parent company or subsidiary or any subsidiary of the same parent company as
appointed in accordance with the Securities and Exchange Act or the laws of the country of the said company.
8. Not a director, supervisor, managerial officer, or shareholder holding 5% or more of the shares of a specified company or institution that has a financial or business relationship with SinoPac
Holdings. This restriction does not apply to cases where the specified company or institution holds more than 20% but less than 50% of the shares of SinoPac Holdings and the person is
concurrently an independent director of SinoPac Holdings and its parent company or subsidiary or any subsidiary of the same parent company as appointed in accordance with the Securities and
Exchange Act or the laws of the country of the said company.
9. Not a professional individual who is an owner, partner, director, supervisor, or managerial officer of a sole proprietorship, partnership, company, or institution that offers audit services or offers
commercial, legal, financial, or accounting services for which he/she has received the total remuneration of less than NT$500,000 over the past two years to SinoPac Holdings or its affiliate, nor
a spouse thereof. This restriction does not apply to any member of the remuneration committee, public tender offer review committee or merger and acquisition special committee who exercises
powers pursuant to the Securities and Exchange Act or Business Mergers And Acquisitions Act.
10. Not a spouse or a relative within the second degree of kinship with any Director.
11. Where none of the circumstances in the subparagraphs of Article 30 of the Company Act applies.
12. Where the person is not elected in the capacity of the government, a corporation, or a representative thereof as provided in Article 27 of the Company Act.
February 29, 2020Board of Directors (2)
Qualifications
Name
Has More than 5 Years of Work Experience and the Following Professional Qualifications
Instructor or above in Department of Business/
Legal/Finance/Accounting or Other Company Affairs-related
Subjects at Public/Private
University/ College
Judge, Prosecutor,
Lawyer, CPA or Professional or Technician
with Certificate of National Examination Relating to
Other Company Affairs
Work Experience in Business/
Legal/Finance/Accounting or
Other Company Affairs
Conformance to Criteria of Independence
ONG Wen-Chyi
SCHIVE Chi
James J. SHEU
CHIU Cheng-Hsiung
Stanley CHU
YEH Chi-Hsing
CHEN Chia-Hsien
HO Yi-Da
3
3
33
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
0
2
0
0
0
0
0
0
1 2 3 4 5 6 7 8 9 10 11 12
Number of Other TWSE/TPEx Listed Companies
where He/She
Concurrently Serves as
Independent Director
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
15
(II) President, Executive Vice Presidents, and Senior Vice Presidents of Divisions
February 29, 2020President, Executive Vice Presidents, and Senior Vice Presidents of Divisions
Chairman of Cathay Securities
Corporation
Spokesman and Senior Executive
Vice President, Taiwan Stock
Exchange Corporation
EMBA, National Taiwan University
Chief Auditor of AnShin Card
Services Co., Ltd.
Chief Auditor of SinoPac
Securities Corp.
Bachelor of Business
Administration, Soochow
University
Manager of Legal Department,
Yuen Foong Yu Paper Mfg. Co.,
Ltd.
Bachelor of Law, National Taiwan
University
President of SinoPac Securities
Investment Trust Co., Ltd.
Managing Director of SinoPac
Asset Management (Asia) Ltd.
MBA, University of Texas at
Arlington
Head of Secretariat Division and
Chief Compliance Officer, Fubon
Financial Holdings
Chief Compliance Officer and
Senior Vice President, Taipei
Fubon Commercial Bank Co., Ltd.
Master of Laws, National Chengchi
University
CRO of JihSun Financial Holding
Co., Ltd.
Head of Risk Management Division
of JihSun Securities Co., Ltd.
Master of Business Administration,
National Chengchi University
Chief Information Security Officer,
Fubon Financial Holdings
Chief Information Officer, Fubon
Financial Holdings
M.S. University of Alabama at
Birmingham
Head of President Office, SinoPac
Holdings
First Vice President of CFO
Office, SinoPac Holdings
Master of Finance, National
Chung Cheng University
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
President
Chief Auditor
Chief Secretary
& Company
Secretary
Chief Financial
Officer &
Spokesperson &
Head of Finance
Management
Division
Chief Compliance
Officer & Head
of Legal &
Compliance
Division
Head of Risk
Management
Division
Head of President
Office & Head
of Digital &
Technology
Division
Head of
Operations
Management
Division
Chairman of SinoPac Securities
Corp.
Director of SinoPac Holdings
Director of Bank SinoPac
Director of Taiwan Stock
Exchange Corporation
Director of National Performing
Arts Center
Chief Secretary & Company
Secretary, Senior Executive Vice
President, Bank SinoPac
Director of SinoPac Securities
(Cayman)Holdings Ltd.
Chairman of SinoPac Venture
Capital Co., Ltd.
Director of SinoPac Asset
Management (Asia) Ltd.
Director of SinoPac Securities
Investment Trust Corp.
Director of Golden Trust SinoPac
Fund Management Co., Ltd.
Supervisor of Sanjin Integrated
Marketing Co., Ltd.
Director of Telexpress Co., Ltd.
Director of TELEXPRESS Corp.
Head of Administration Division,
Senior Executive Vice President,
Bank SinoPac
2018/01/08
2019/01/25
2005/05/24
2014/04/28
2018/04/02
2018/06/19
2018/11/01
2013/10/01
0
0
21,420
11,899
5
0
0
20,229
0
0
0.00%
0.00%
0.00%
0
0
0.00%
0
2,048
240,997
0
0
0
0
0
0
0.00%
0.00%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
None
None
None
None
None
None
None
None
Stanley
CHU
James
T.S.CHEN
Jenny
HUANG
Kerry HSU
Patricia
LIN
Darren
YANG
Sean LEE
HO Hsin
Shares Owned (Note 1)
No. of Shares %
Shares Owned by Spouse & Minors (Note 1)
No. of Shares %
Shares Held under Surrogate A/C (Note 1)
No. of Shares % Title Name Relationship
Education & Key
Past Positions
Positions Held
Concurrently
Related to President, Executive Vice Presidents and Senior Vice Presidents of Divisions
R.O.C.
R.O.C.
R.O.C.
R.O.C.、
Hong Kong
R.O.C.
R.O.C.
R.O.C.
R.O.C.
Male
Male
Female
Female
Female
Male
Male
Male
NameElected
DateTitle Nationality Gender
ANNUAL REPORT 2019
16
Chief Human Resources Officer
& Head of CHRO Office, SinoPac
Holdings
Deputy Head of Human Resources
Division, Associate Executive
Vice President, Bank SinoPac
Master of Science, National Sun
Yat-sen University
Head of Accounting Department,
Bank SinoPac
Acting Head of Accounting
Division, SinoPac Holdings
Bachelor of Accountancy,
National Cheng Kung University
Head of Research Division,
SinoPac Holdings
Chairman of Department of
Economics, National Chi Nan
University
Ph.D. in Economics, University of
Wisconsin, Madison
President and Chief Financial
Officer of SinoPac Holdings
Chairman of Bank SinoPac
MBA, Central Missouri State
University
Chief Financial Officer of
SinoPac Holdings
President of Bank SinoPac
Post Graduate Diploma of
Financial & Business Economics,
University of Essex
Director of Bank SinoPac (China)
Ltd.
Chief Executive of Operation,
Senior Executive Vice President,
Bank SinoPac
Master Degree of International
Finance, National Taipei
University
Executive Vice President, Mega
Financial Holdings
Senior Executive Vice President
of Fuhwa Financial Holding
Company and President of Fuhwa
Commercial Bank Company
SJD., LL.M., Southern Methodist
University
Head of CFO Office, SinoPac
Holdings
Director of SinoPac Bancorp
Bachelor of International Trade,
Fu Jen Catholic University
Executive Vice President, KGI
Bank
Ph.D. in Economics, Xiamen
University
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
Head of Human
Resources
Division
Chief Accountant
Chief Economist
Chief Senior
Consultant
Senior Executive
Vice President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Head of Human Resources
Division, Executive Vice
President, Bank SinoPac
Head of Accounting Division,
Associate Executive Vice
President, Bank SinoPac
Director of SinoPac
Securities(Cayman)Holdings Ltd.
Supervisor of Bank
SinoPac(China) Ltd.
Chairman of SinoPac Securities
Investment Service Corp.
Independent Director of BoardTek
Electronics Corp.
Director of SinoPac Venture
Capital Co., Ltd.
Director of SinoPac Capital
(B.V.I) Ltd.
Director of SinoPac Capital Ltd.
Senior Executive Vice President
of President Office, Bank SinoPac
Director of SinoPac Capital Ltd.
Senior Executive Vice President,
Secretariat Division, Bank
SinoPac
Director of SinoPac Capital
International Ltd.
Head of President Office and
Acting Spokesperson, Senior
Executive Vice President, Bank
SinoPac
Head of Financial Markets
Division, Senior Executive Vice
President, Bank SinoPac
President of CFA Society Taiwan
2013/08/26
2009/10/01
2008/07/01
2015/07/15
2007/09/11
2009/12/25
2017/11/01
2017/03/01
2018/12/03
14,280
141,695
490,569
4,223,000
0
81,432
0
275,880
0
0.00%
0.00%
0.00%
0.04%
0
0.00%
0
0.00%
0
0
0
562,460
0
18,952
19,950
0
238,012
0
0
0
0.00%
0
0.00%
0.00%
0
0.00%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
None
None
None
None
None
None
None
None
None
LIAO Chia-
Hung
CHANG
Hsiang –
Yuan
Jack
HUANG
YU Kuo-Chi
Michael
CHANG
CHEN Chia-
Hsing
CHEN
Chung-
Hsing
Benjamin
LIN
Jeffrey C.C.
HUANG
Shares Owned (Note 1)
No. of Shares %
Shares Owned by Spouse & Minors (Note 1)
No. of Shares %
Shares Held under Surrogate A/C (Note 1)
No. of Shares % Title Name Relationship
Education & Key
Past Positions
Positions Held
Concurrently
Related to President, Executive Vice Presidents and Senior Vice Presidents of Divisions
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
NameElected
DateTitle Nationality Gender
Male
Female
Male
Male
Male
Male
Male
Male
Male
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
17
Head of Enterprise Architecture
Department, Senior Executive
Vice President, Bank SinoPac
Head of Information Technology
Division, SinoPac Holdings
Bachelor of Economics, Soochow
University
Director of SinoPac Securities
Investment Trust Co., Ltd.
MERRILL LYNCH (Asia Pacific)
Limited, Hong Kong
MBA, Syracuse University
Chairman of SinoPac Venture
Capital Co., Ltd.
President of Bank SinoPac
Master of Science in Finance,
Drexel University
Chairman of Fubon Securities
Investment Services Co., Ltd.
Bachelor of Marine
Transportation, National Chiao
Tung University
Director of SinoPac Leasing
(Tianjin) Co., Ltd.
Head of President Office,
SinoPac Holdings
MBA, Keio University
Chief Auditor of SinoPac
Holdings
Chief Financial Officer &
Spokesperson of SinoPac
Holdings
EMBA, National Chengchi
University
President of Far East National
Bank
Director of SinoPac Bancorp
MBA, San Diego State University
Senior Vice President of
Corporate Strategy & Planning
Department, China Development
Financial Holding Co., Ltd.
Senior Vice President, CDIB
Capital Group
EMBA, National Chengchi
University
Head of President Office,
SinoPac Holdings
Acting Managing Director of
SinoPac Securities (Asia) Ltd.
MBA, Rotterdam School of
Management, Erasmus University
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
Executive Vice
President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Executive Vice
President
Senior Vice
President
& Acting
Spokesperson
Senior Vice
President
Robert
TSAI
Matt
CHUANG
Philip J.
WEI
Henry LIN
CHANG
Tse- Min
LIAO Ta-Te
Alton
WANG
Vincent
HSIAO
Leonard
HSUEH
Head of IT & Operations &
Electronic Banking and Head of
Information Technology Division,
Senior Executive Vice President,
Bank SinoPac
Director of RSP Information
Service Co., Ltd.
Director of Bank SinoPac (China)
Ltd.
Head of Financial Markets &
Overseas Business & Corporate
Banking, Senior Executive Vice
President, Bank SinoPac
Director of SinoPac Insurance
Brokers Ltd.
Chairman of SinoPac Leasing
Corp.
Chairman of SinoPac
International Leasing Corp.
Chairman of SinoPac Leasing
(Tianjin) Co., Ltd.
Director of Taiwan Global
BioFund
Chairman of SinoPac Securities
Investment Trust Co., Ltd.
Director of Golden Trust SinoPac
Fund Management Co., Ltd.
Senior Executive Vice President,
Hong Kong Branch, Bank SinoPac
Chairman of SinoPlus Venture
Capital Corp.
Chairman of SinoPac Asset
Management (Asia) Ltd.
Supervisor of SinoPac Securities
Investment Trust Co., Ltd.
Head of Overseas Business
Division, Senior Executive Vice
President, Bank SinoPac
Director of Bank SinoPac (China)
Ltd.
Spokesperson, Associate
Executive Vice President of
President Office, Bank SinoPac
Associate Executive Vice
President of Secretariat, Bank
SinoPac
Director of SinoPlus Venture
Capital Corp.
2006/09/01
2017/09/01
2017/12/07
2018/07/16
2010/03/04
2019/01/25
2019/07/01
2019/05/06
2014/12/01
90,848
0
200,000
0
23,800
489,719
7,732
0
0
0.00%
0
0.00%
0
0.00%
0.00%
0.00%
0
0
268,309
0
0
0
1,005
0
0
0
0
0.00%
0
0
0
0.00%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
None
None
None
None
None
None
None
None
None
Shares Owned (Note 1)
No. of Shares %
Shares Owned by Spouse & Minors (Note 1)
No. of Shares %
Shares Held under Surrogate A/C (Note 1)
No. of Shares % Title Name Relationship
Education & Key
Past Positions
Positions Held
Concurrently
Related to President, Executive Vice Presidents and Senior Vice Presidents of Divisions
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.、
Hong Kong
NameElected
DateTitle Nationality Gender
Male
Male
Male
Male
Male
Male
Male
Male
Male
ANNUAL REPORT 2019
18
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
CHIANG
Chao Hung
CHIN
Che-Hui
Tiffany
CHENG
LIAO
Shun-Hsing
Kevin
CHAO
Victoria
YU
2017/07/24
2015/08/01
2014/05/14
2015/07/01
2018/10/01
2017/09/01
0
145,092
0
0
32,428
23,057
0
0.00%
0
0
0.00%
0.00%
0
0
7,807
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Special Assistant to CEO,
Answern Property & Casualty
Insurance Co., Ltd.
Head of Legal & Compliance
and Internal Control, Mitsui
Sumitomo Mingtai Insurance Co.,
Ltd.
LL.M., NYU School of Law
Head of Retail Banking Division,
Associate Executive Vice
President, Bank SinoPac
Head of President Office,
SinoPac Holdings
Master of Science in Finance,
University of Illinois at Urbana-
Champaign
Head of Financial Markets
Division, Bank SinoPac
Deputy Head of Financial
Markets Division, and Head of
Financial Product Department
and Treasury Marketing
Department, Bank SinoPac
MBA, University of California,
Riverside
Deputy Head of Legal &
Compliance Division, Associate
Executive Vice President, Bank
SinoPac
Acting Head of Legal &
Compliance Division, Bank
SinoPac
Bachelor of Law, National Chung
Hsing University
Deputy Head of Information &
Technology Division and Head
of User Experience Department,
Associate Executive Vice
President, Bank SinoPac
Head of System Infrastructure
Department, Senior Vice
President, Bank SinoPac
Master of Computer Science,
University of Maryland
Senior Vice President of
Business Department, Bank
SinoPac
Head of Chunghsiao Branch,
Bank SinoPac
Master of Science in Finance,
National Taiwan University.
Director of SinoPac Securities
(Asia) Ltd.
Associate Executive Vice
President of Secretariat, Bank
SinoPac
Head of Legal Division, Executive
Vice President, Bank SinoPac
Supervisor of SinoPac Venture
Capital Co., Ltd.
Supervisor of SinoPac Leasing
Corp.
Director of SinoPac Capital Ltd.
Director of SinoPac Capital
(B.V.I) Ltd.
Director of Dream Crafts Group
Co., Ltd.
Head of Information Security
Division, Associate Executive
Vice President, Bank SinoPac
Head of Corporate Banking
Product Development Department,
Associate Executive Vice
President, Bank SinoPac
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
Shares Owned (Note 1)
No. of Shares %
Shares Owned by Spouse & Minors (Note 1)
No. of Shares %
Shares Held under Surrogate A/C (Note 1)
No. of Shares % Title Name Relationship
Education & Key
Past Positions
Positions Held
Concurrently
Related to President, Executive Vice Presidents and Senior Vice Presidents of Divisions
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
R.O.C.
0
0
0.00%
0
0
0
NameElected
DateTitle Nationality Gender
Male
Female
Female
Male
Male
Female
FinancialInformation
Financial Positions andPerformance and Risk Management
SpecialDisclosure
AppendixOverview of
Business OperationState of
Capital RaisingLetter to
ShareholdersCorporate Profile and Corporate
Governance Report
19
(III) Information on Chairmen or Presidents retiring from a company or affiliates and reappointed as consultants and their
remuneration
None.
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
William SU
Irene
HUANG
CHANG
Sheng-Pao
Michelle
LIN
2016/10/01
2018/05/26
2018/05/26
2017/09/01
1,000
15,096
28,283
59,180
0.00%
0.00%
0.00%
0.00%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Director of SinoPac Securities
(Asia) Ltd.
Managing Director of SinoPac
Asset Management (Asia) Ltd.
Master of Science in Financial
Engineering, Columbia University
in the City of New York
Deputy Head of Electronic
Banking Division, Bank SinoPac
Head of Cash Payment and
Management Department, Bank
SinoPac
Bachelor of Public
Administration, National
Chengchi University
Head of Operations Division,
Bank SinoPac
MBA, National Sun Yat-sen
University
Head of Corporate Planning
Division, SinoPac Securities
Corp.
MBA for Executive, National
Taipei University
Head of Digital Finance &
Technology Division and
Information Technology
Department, SinoPac Securities
Corp.
Director of SinoPac Capital
(Asia) Ltd.
Director of SinoPac International
Holdings Ltd.
Director of SinoPac Solutions
and Services Ltd.
Director of SinoPac (Asia)
Nominees Ltd.
Head of Electronic Banking
Division, Associate Executive
Vice President, Bank SinoPac
Head of Business Planning
Division & Acting Head of
Business Intelligence Department,
Associate Executive Vice
President, Bank SinoPac
Head of President Office,
SinoPac Securities Corp.
Supervisor of SinoPac Futures
Corp.
Supervisor of SinoPac Financial
Consulting (Shanghai) Ltd.
None
None
None
None
None
None
None
None
None
None
None
None
Shares Owned (Note 1)
No. of Shares %
Shares Owned by Spouse & Minors (Note 1)
No. of Shares %
Shares Held under Surrogate A/C (Note 1)
No. of Shares % Title Name Relationship
Education & Key
Past Positions
Positions Held
Concurrently
Related to President, Executive Vice Presidents and Senior Vice Presidents of Divisions
R.O.C.
R.O.C.
R.O.C.
R.O.C.
Note1:"Shares Owned", "Shares Owned by Spouse & Minors" , and "Shares Held under Surrogate A/C" etc. are based on available data as of December 31,2019.
Note2:The Company's Chairman and President or personnel with equivalent position (chief manager) are not the same person, spouses or relatives within one degree of kinship.
NameElected
DateTitle Nationality Gender
Male
Female
Male
Female
ANNUAL REPORT 2019
20
(IV) Remuneration and Compensation to Directors, President, and Executive Vice Presidents
Unit : NT$ thousand Remuneration and Compensation to Directors in 2019
Hsinex International Corp. /
ONG Wen-Chyi
YFY Inc. /
Stanley CHU
YFY Inc. /
CHIU Cheng-Hsiung
YFY Inc. /
YEH Chi-Hsing
CHEN Chia-Hsien
Hsinex International Corp. /
HO Yi-Da
SCHIVE Chi
James J. SHEU
TSAI Ying-Yi
(Note8)
Chairman
Director
Director
Director
Director
Director
Independent
Director
Independent
Director
Independent
Director
None14,500 27,834 0 24,000 13,582 (Including car and gas
compensation 995)
19,705 (Including car and gas
compensation 2,984)
0.42%32,000 31,344 31,344 0 0 0.67% 0.89%108(Note 5)
108(Note 4)
0 0.64% 0 0
None0 0 0 9,000 2,390 2,922 0.09%10,000 0 0 0 0 0.09% 0.10%000 0.10% 0 0
Position Name
Remuneration The Aggregate of A,B,C,and D as
Percentage of Net Income (Note3)
Base Compensation (A)
Directors' Compensation (C)
( Note 2)
Business-conducting Expenses (D)
Relevant Remuneration Received by Who are also Employees
Salaries, Bonuses and Special Allowances (E)
Employees' Compensation(G)
The Company
The Company
The Company
The Company
The Company
The Company
The Company
The Company
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
All Consolidated
Entities
The Aggregate of A,B,C,D,E,F
and G as Percentage of Net Income
(Note 3)
Any Other Compensations
from Other Investees or Parent CompanyCash
DividendsStock
DividendsCash
DividendsStock
Dividends
The Company
Ret