Financial Data and Key Metrics Changes - Q1 2020 revenue increased by 25% compared to Q1 2019, reaching $184.7 million, marking the highest level in five years [9][21] - Gross profit rose by 90% year-over-year and was up 0.3% compared to Q4 2019, with a gross margin of 22.7% [9][20] - Net earnings surged by 233% year-over-year to $23.6 million, with net earnings per share of $0.03 [9][22] - Overall utilization rate improved to 79% in Q1 2020 from 70% in Q1 2019 and 76% in Q4 2019 [9][11] Business Line Data and Key Metrics Changes - Memory products accounted for 42.1% of total Q1 revenue, up from 39.2% in Q4 2019, with DRAM and NAND flash driving growth [12] - Revenue from DRAM and end-to-end products represented about 30.1% of total Q1 revenue, while NAND flash contributed approximately 22% [12] - The assembly product line contributed around 26% to total revenue, with driver IT-related products increasing to 47.4% of total Q1 revenue [12][13] Market Data and Key Metrics Changes - Revenue from smart mobile devices represented about 36% of total Q1 revenue, while the TV category accounted for 19% and consumer electronics for 22% [13] - Demand for computing products, driven by work-from-home trends, contributed significantly to revenue growth [10][41] Company Strategy and Development Direction - The company is focusing on automation improvements and maintaining a strong balance sheet while reducing capital expenditures to navigate the uncertain market [10][14] - There is a positive outlook for memory products, with expectations for stable demand in cloud storage and gaming, while the LCD driver market faces uncertainty [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance in the first half of 2020, with expectations for revenue growth of over 20% compared to the same period last year [39] - The company anticipates a conservative approach to capital expenditures, targeting less than 20% of total revenue for the year [30] Other Important Information - The company reported a significant increase in cash and cash equivalents, reaching $248.3 million by the end of Q1 2020 [24] - A senior executive, Lafair Cho, will retire effective July 1, 2020, transitioning responsibilities to newly appointed executives [17] Q&A Session Summary Question: Can the company maintain high revenue levels through the rest of 2020? - Management indicated that the first half of 2020 looks promising, but expects a slight decline in May and June, with a conservative outlook for the second half [28] Question: What is the expected CapEx for the second half of the year? - Management stated that CapEx is expected to be less than 20% of total revenue for the year, down from around 25% in previous years [30] Question: How much of the revenue growth is from higher ASPs versus unit growth? - Management noted that revenue growth is driven by both higher average selling prices and increased unit sales, particularly in the LCD driver and memory segments [31][32] Question: Are there opportunities for increasing prices? - Management acknowledged potential for price increases in memory products but not in the LCD driver segment at this time [34] Question: Is the company maintaining normal inventory levels during the pandemic? - Management confirmed an increase in material inventory to support customers due to transportation and logistics challenges [50] Question: How is the Shanghai operation performing? - Management reported improved performance in the Shanghai operation, attributing it to support from YMTC and expected benefits from the new shareholder structure [60][53]

Table of Contents As filed with the Securities and Exchange Commission on April 23, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COM ...

ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) Q4 2019 Results Earnings Conference Call March 10, 2020 8:00 AM ET Company Participants David Pasquale - Global IR Partners Shih-Jye Cheng - Chairman, CEO & President Silvia Su - VP of Finance & Accounting Management Center Jesse Huang - VP, Strategy & Investor Relations, Spokesperson Conference Call Participants Scott Bishins - Caffeine Holdings Vipul Sagar - Blash Capital Operator Good day, and welcome to the ChipMOS Technologies Fourth Quarter Full Year 2019 Result ...

ChipMOS Technologies Inc. (NASDAQ:IMOS) Q3 2019 Earnings Conference Call November 6, 2019 7:00 AM ET Company Participants David Pasquale – Global IR Partners S.J. Cheng – Chairman and President Silvia Su – Vice President of Finance and Accounting Management Center Conference Call Participants Scott Bishins – Caffeine Holdings Vipul Sagar – Blash Capital Operator Welcome to the ChipMOS Third Quarter 2019 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today. ...

Financial Data and Key Metrics Changes - The company achieved a 10% revenue growth in Q2 compared to Q1, with total revenue reaching $158.2 million [8][15] - Gross margin improved to 17.1% in Q2 from 15% in Q1, with net earnings per basic ADS increasing to $1.13 from $0.17 in Q1 [9][15] - Net profit for Q2 was $41.1 million, compared to $6.3 million in Q1, reflecting a significant increase in profitability [15][16] - Cash generation increased, with a reduction in net debt by $38.1 million, resulting in a net debt-to-equity ratio of 26.6% [9][17] Business Line Data and Key Metrics Changes - Revenue from Flash products grew by 14.4% in Q2 compared to Q1, representing about 19% of total Q2 revenue, while DRAM accounted for about 16% [10] - Driver IC-related business products saw a 13% revenue growth compared to Q1, with TDDI product revenue growing by 24% [11][12] - The revenue breakdown for Q2 was 20.1% in testing, 24.7% in assembly, 36% in LCD driver business, and 19.2% in bumping [15][16] Market Data and Key Metrics Changes - The automotive and industrial markets represented about 9% of total revenue in Q2, while TVs accounted for 24% and smart mobile devices increased to 39% [12] - The company is experiencing strong demand from TDDI and NAND flash businesses, particularly from new customer programs [10][13] Company Strategy and Development Direction - The company is focused on diversifying its customer base and end markets, which is driving revenue growth [8] - There is an emphasis on improving product cost and capacity utilization, with a target to maintain CapEx under 20% of total revenue [9][25] - The company is optimistic about growth in NAND and NOR flash segments, with plans to ramp up production and engage with key players in the market [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2019, citing healthy inventory levels and strong customer demand [13] - The company expects continued revenue growth in Q3 and Q4, although Q4 may see slightly lower growth compared to Q3 [31][32] - Management highlighted the positive impact of trade tensions, leading to increased customer shipping capacity to Taiwan [10] Other Important Information - A cash dividend of $0.77 per ADS was approved by shareholders, reflecting the company's commitment to returning value to shareholders [9][14] - The company completed the sale of 9.1 million common shares of JMC, resulting in a disposal gain of approximately $31.7 million [16] Q&A Session Summary Question: Can you provide additional color on gross margin trends for the second half? - Management indicated that gross margins are expected to improve further, with Q2's actual gross margin at 18.6% after adjusting for the JMC sale [21][23] Question: What is the CapEx outlook for the remainder of the year? - The company aims to keep total CapEx for 2019 in the range of 20% to 25% of total revenue [25] Question: What is the expected free cash flow for the remaining quarters? - Free cash flow for the total year is projected to be in the range of $5 million to $10 million, with Q3 expected to show negative free cash flow due to bonuses and dividends [27] Question: Can you provide updates on the joint venture in China? - The joint venture is progressing, with Unigroup taking the majority stake, and the company is recognizing long-term investment gains [29] Question: What is the revenue outlook for Q3 and Q4? - Management forecasts good performance for Q3, with Q4 expected to show sequential growth but slightly lower than Q3 [31][32]

ChipMOS Technologies, Inc. (NASDAQ:IMOS) Q1 2019 Results Earnings Conference Call May 7, 2019 8:00 AM ET Company Participants David Pasquale - Global IR Partners Shih-Jye Cheng - CEO Silvia Su - VP of Finance & Accounting Management Center Operator Greetings, and welcome to the ChipMOS Technologies Inc. First Quarter 2019 Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host today, David Pasquale, Global IR Partners. ...

[Key Information](index=5&type=section&id=Item%203.%20Key%20Information) [Selected Financial Data](index=5&type=section&id=Selected%20Financial%20Data) Revenue slightly increased in 2018, but profit attributable to equity holders significantly decreased due to a prior year's one-time gain, with cash also declining Consolidated Income Statement Data (2016-2018) | Indicator | 2016 (NT$ million) | 2017 (NT$ million) | 2018 (NT$ million) | 2018 (US$ million) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 18,387.6 | 17,940.9 | 18,480.0 | 603.7 | | Gross Profit | 3,642.1 | 3,237.2 | 3,430.0 | 112.1 | | Operating Profit | 1,998.5 | 2,239.9 | 2,099.7 | 68.6 | | Profit from Continuing Operations | 1,523.3 | 981.9 | 1,325.8 | 43.3 | | Profit (Loss) from Discontinued Operations | (122.1) | 1,815.0 | — | — | | Profit for the Year | 1,401.2 | 2,796.9 | 1,325.8 | 43.3 | | Basic EPS (Equity Holders - Continuing) | NT$2.13 | NT$1.16 | NT$1.65 | US$0.05 | Consolidated Statement of Financial Position Data (As of Dec 31, 2017-2018) | Indicator | 2017 (NT$ million) | 2018 (NT$ million) | 2018 (US$ million) | | :--- | :--- | :--- | :--- | | Total Assets | 33,259.9 | 33,133.7 | 1,082.4 | | Total Liabilities | 15,139.0 | 15,112.5 | 493.7 | | Total Equity | 18,120.9 | 18,021.2 | 588.7 | | Cash and Cash Equivalents | 8,035.7 | 4,642.5 | 151.7 | | Long-term Bank Loans | 7,498.9 | 9,042.1 | 295.4 | Consolidated Statement of Cash Flows Data (2016-2018) | Indicator | 2016 (NT$ million) | 2017 (NT$ million) | 2018 (NT$ million) | 2018 (US$ million) | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 3,688.0 | 4,157.3 | 4,129.2 | 134.9 | | Net Cash used in Investing Activities | (4,556.7) | (3,493.4) | (5,129.3) | (167.6) | | Net Cash used in Financing Activities | (3,223.9) | (550.8) | (2,400.4) | (78.4) | | Net (Decrease) in Cash | (4,166.1) | 74.5 | (3,393.2) | (110.9) | [Risk Factors](index=8&type=section&id=Risk%20Factors) The company faces diverse risks including semiconductor industry cyclicality, customer concentration, high fixed costs, geopolitical tensions, and securities volatility [Risks Relating to Our Industry](index=8&type=section&id=Risks%20Relating%20to%20Our%20Industry) The company's performance is heavily tied to the highly cyclical semiconductor industry, making it vulnerable to market downturns and declining average selling prices - The company's business is dependent on the highly cyclical semiconductor industry. Revenue for 2017 decreased by **2.4%** from 2016, while 2018 revenue increased by **3.0%** from 2017[18](index=18&type=chunk) - A significant portion of revenue comes from testing and assembling memory semiconductors, accounting for **48%**, **46%**, and **43%** of revenue in 2016, 2017, and 2018, respectively. Downturns in DRAM prices could significantly reduce revenue and profit[23](index=23&type=chunk) - The company has significant investment in equipment for LCD and other display panel driver semiconductors. A decrease in market demand for these products could negatively affect capacity utilization and profitability[24](index=24&type=chunk) [Risks Relating to Our Business](index=9&type=section&id=Risks%20Relating%20to%20Our%20Business) Key business risks include intense competition, high customer concentration, significant fixed costs impacting profitability, substantial indebtedness, and production yield issues - The company is highly dependent on a small group of customers. In 2018, the top five customers accounted for **61%** of revenue[30](index=30&type=chunk) - Operations are characterized by high fixed costs. For example, in 2018, fixed costs represented **49%** of the total cost of revenue for memory and logic/mixed-signal testing services, making profitability highly sensitive to capacity utilization rates[32](index=32&type=chunk) - As of December 31, 2018, the company had approximately **NT$9,790 million** (**US$320 million**) in outstanding long-term indebtedness, which poses risks to its business operations and cash flow[25](index=25&type=chunk) - The company's joint venture with Tsinghua Unigroup, which involved selling **54.98%** of its subsidiary Unimos Shanghai, carries risks associated with acquisitions, investments, and joint ventures that could impact the business strategy[53](index=53&type=chunk) [Risks Relating to Countries in Which We Conduct Operations](index=16&type=section&id=Risks%20Relating%20to%20Countries%20in%20Which%20We%20Conduct%20Operations) Operations in Taiwan expose the company to political risks from ROC-PRC relations, natural disasters, and uncertainties from the US-Mainland China trade war - The company's principal executive offices and facilities are in Taiwan, exposing it to political risks associated with the relationship between the ROC and the PRC, which could adversely affect business and stock price[62](index=62&type=chunk) - Operations are vulnerable to disruptions from natural disasters, as facilities are located in regions susceptible to earthquakes[65](index=65&type=chunk)[66](index=66&type=chunk) - Uncertainties about the 'trade war' between the United States and Mainland China may materially and adversely affect results of operations due to potential disruptions in the complex semiconductor supply chain[68](index=68&type=chunk) [Risks Relating to Our Common Shares or ADSs](index=19&type=section&id=Risks%20Relating%20to%20Our%20Common%20Shares%20or%20ADSs) Securities risks include price volatility, differing ADS voting rights, restrictions on ADR deposits, and limited participation in rights offerings for ADS holders - Holders of ADSs have different voting rights than holders of common shares. If the depositary does not receive timely instructions, ADS holders are deemed to have given a discretionary proxy to a person designated by the Company[80](index=80&type=chunk) - The ability to deposit shares into the ADR facility is restricted by ROC law, which may adversely affect the liquidity and price of the ADSs[83](index=83&type=chunk) - The rights of ADS holders to participate in rights offerings are limited, which could cause dilution to their holdings if they are unable to exercise such rights[86](index=86&type=chunk) [Information on the Company](index=22&type=section&id=Item%204.%20Information%20on%20the%20Company) [Overview of the Company](index=22&type=section&id=Overview%20of%20the%20Company) ChipMOS is a leading independent semiconductor assembly and test provider, specializing in display drivers and memory, which underwent a 2016 merger and 2017 joint venture - The company is a leading independent provider of testing and assembly services for LCD and other display panel driver semiconductors, as well as advanced memory and logic/mixed-signal products[92](index=92&type=chunk) - In October 2016, ChipMOS Bermuda merged into the company, with the company as the surviving entity. This resulted in the issuance of ADSs listed on NASDAQ, each representing **20 common shares**[95](index=95&type=chunk) - In March 2017, the company completed the sale of a **54.98%** equity interest in its subsidiary Unimos Shanghai to strategic investors led by a subsidiary of Tsinghua Unigroup, making Unimos Shanghai an affiliate rather than a subsidiary[102](index=102&type=chunk)[105](index=105&type=chunk) [Industry Background](index=24&type=section&id=Industry%20Background) The company provides back-end semiconductor services within a cyclical industry, benefiting from the trend of outsourcing by IDMs and fabless companies, with Taiwan as a key global hub - The semiconductor manufacturing process is broadly divided into circuit design, wafer fabrication, wafer probe, assembly, and final test. ChipMOS provides back-end services including wafer probe, assembly, and final test[114](index=114&type=chunk) - There is a significant trend of outsourcing in the semiconductor industry, driven by high capital expenditure requirements, a focus on core competencies, and time-to-market pressures. This has benefited independent service providers like ChipMOS[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Taiwan is one of the world's leading locations for outsourced semiconductor manufacturing, featuring a specialized and disaggregated supply chain that allows for economies of scale and efficiency[119](index=119&type=chunk) [Our Strategy](index=27&type=section&id=Our%20Strategy) The company's strategy focuses on reinforcing its leadership in semiconductor assembly and test services by targeting high-growth segments, investing in R&D, leveraging Taiwan's presence, and expanding integrated offerings - Focus on providing services to potential growth segments of the semiconductor industry, such as memory, logic/mixed-signal, MEMS, and LCD/display panel driver semiconductors[122](index=122&type=chunk) - Continue to invest in R&D of advanced assembly and test technologies, with a 2018 R&D expenditure of **5.1%** of revenue[123](index=123&type=chunk)[126](index=126&type=chunk) - Build on its strong presence in Taiwan to leverage proximity to suppliers, customers, and a skilled labor pool, while also exploring opportunities in Mainland China through its joint venture[127](index=127&type=chunk)[128](index=128&type=chunk) - Expand offerings of vertically integrated services (testing, assembly, direct shipment) to shorten lead times for customers[129](index=129&type=chunk) [Principal Products and Services](index=29&type=section&id=Principal%20Products%20and%20Services) Revenue is derived from Testing, Assembly, LCD/display panel driver, and Bumping services, with LCD driver services being the largest segment in 2018, offering comprehensive solutions for memory, logic/mixed-signal, and display drivers Revenue by Service Segment (% of Total Revenue) | Service Segment | 2016 | 2017 | 2018 | | :--- | :--- | :--- | :--- | | Testing | 25.0% | 26.9% | 25.9% | | Assembly | 31.9% | 29.4% | 25.3% | | LCD and other display panel driver semiconductor testing and assembly | 26.8% | 26.7% | 30.8% | | Bumping | 16.3% | 17.0% | 18.0% | | **Total** | **100.0%** | **100.0%** | **100.0%** | - The company provides a wide range of testing services, including engineering testing, wafer probing, burn-in testing, and final testing for memory (SRAM, DRAM, Flash) and logic/mixed-signal semiconductors[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - Assembly services include various package formats such as leadframe-based (e.g., TSOP, QFP) and organic substrate-based (e.g., BGA, FCCSP), as well as Wafer-Level Chip Scale Packages (WLCSP)[146](index=146&type=chunk)[153](index=153&type=chunk)[157](index=157&type=chunk) - For display driver semiconductors, the company offers assembly and test services using Tape Carrier Package (TCP), Chip-on-Film (COF), and Chip-on-Glass (COG) technologies, along with gold and copper bumping services[163](index=163&type=chunk)[175](index=175&type=chunk) [Customers](index=40&type=section&id=Customers) The company exhibits significant customer concentration, with Taiwan being the most significant geographic region for revenue, primarily operating through purchase orders with rolling forecasts - Customer concentration is high, with the top three customers accounting for approximately **21%**, **14%**, and **11%** of revenue in 2018[183](index=183&type=chunk) Revenue by Geographic Region (% of Total Revenue) | Region | 2016 | 2017 | 2018 | | :--- | :--- | :--- | :--- | | Taiwan | 69% | 73% | 80% | | Japan | 10% | 13% | 10% | | Singapore | 17% | 10% | 6% | | Others | 4% | 4% | 4% | | **Total** | **100%** | **100%** | **100%** | [Research and Development](index=41&type=section&id=Research%20and%20Development) The company maintains a strong R&D focus, with NT$939 million spent in 2018, concentrating on advanced packaging and testing technologies with a team of 659 employees R&D Expenses (2016-2018) | Year | R&D Expense (NT$ million) | % of Revenue | | :--- | :--- | :--- | | 2016 | 839 | 4.5% | | 2017 | 986 | 5.5% | | 2018 | 939 | 5.1% | - Key R&D efforts in 2019 are expected to focus on advanced assembly for WLCSP and MEMS, fine-pitch Au and Cu bumping for 300mm wafers, and advanced test capabilities for OLED & TDDI products[124](index=124&type=chunk) [Operating and Financial Review and Prospects](index=48&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) In 2018, revenue increased by 3% driven by LCD driver and bumping services, gross margin improved, but profit attributable to equity holders decreased significantly due to a prior year's one-time gain Revenue by Segment (2017 vs 2018) | Segment | 2017 (NT$ million) | 2018 (NT$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Testing | 4,838 | 4,790 | -1% | | Assembly | 5,259 | 4,679 | -11% | | LCD and other display panel driver | 4,790 | 5,695 | +19% | | Bumping | 3,054 | 3,316 | +9% | | **Total Revenue** | **17,941** | **18,480** | **+3%** | - Gross profit increased to **NT$3,430 million** in 2018 from **NT$3,237 million** in 2017, with gross margin improving to **18.6%** from **18.0%**. The margin improvement was driven by stronger performance in the LCD driver and bumping segments[285](index=285&type=chunk)[287](index=287&type=chunk) - Profit for the year attributable to the Company decreased to **NT$1,326 million** in 2018 from **NT$2,797 million** in 2017. The 2017 figure was significantly boosted by a **NT$1,815 million** profit from discontinued operations (the sale of Unimos Shanghai)[296](index=296&type=chunk) Average Capacity Utilization Rates (2016-2018) | Segment | 2016 | 2017 | 2018 | | :--- | :--- | :--- | :--- | | Testing (Memory & Logic/Mixed-Signal) | 70% | 79% | 77% | | Assembly (Memory & Logic/Mixed-Signal) | 64% | 66% | 64% | | LCD and other display panel driver | 77% | 85% | 80% | | Bumping | 68% | 69% | 72% | [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2018, liquidity was supported by cash and undrawn loan facilities, with significant cash used in investing and financing activities, and NT$9,790 million in long-term debt outstanding - As of Dec 31, 2018, primary liquidity sources included **NT$4,643 million** in cash, **NT$6,007 million** in undrawn short-term facilities, and **NT$1,800 million** in undrawn long-term facilities[333](index=333&type=chunk) - In May 2018, the company obtained a new syndicated loan facility of **NT$12,000 million** for a term of five years to repay existing debt and for working capital[334](index=334&type=chunk) - In 2018, the company executed a capital reduction plan, reducing share capital by approximately **15%** and returning **NT$1.5** per common share (**NT$30** per ADS) to shareholders[335](index=335&type=chunk) Maturities of Long-Term Bank Loans (as of Dec 31, 2018) | Period | Amount (NT$ million) | Amount (US$ million) | | :--- | :--- | :--- | | During 2019 | 748 | 24 | | During 2020 | 754 | 25 | | During 2021 | 754 | 25 | | During 2022 | 754 | 25 | | During 2023 and onwards | 6,780 | 221 | | **Total** | **9,790** | **320** | [Directors, Senior Management and Employees](index=66&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) [Directors and Senior Management](index=66&type=section&id=Directors%20and%20Senior%20Management) As of March 31, 2019, the board comprised eight directors, five independent, with established Audit and Compensation Committees, and Shih-Jye Cheng serving as Chairman and President - The board of directors consists of nine authorized positions, with eight currently filled as of March 31, 2019. Of the eight directors, five are independent[361](index=361&type=chunk) - The company has established an Audit Committee composed of all five independent directors and a Compensation Committee composed of three independent directors[362](index=362&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) [Employees](index=69&type=section&id=Employees) As of March 31, 2019, the company had 5,889 employees, primarily in general operations and engineering, with most based in Taiwan and no collective bargaining agreements Employees by Function (as of March 31, 2019) | Function | Number of Employees | | :--- | :--- | | General operations | 3,067 | | Quality control | 334 | | Engineering | 1,440 | | Research and development | 659 | | Sales, administration and finance | 137 | | Others | 252 | | **Total** | **5,889** | [Major Shareholders and Related Party Transactions](index=70&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) [Major Shareholders](index=70&type=section&id=Major%20Shareholders) As of April 12, 2019, Siliconware Precision Industries and the ADS Depositary were the largest shareholders, with the Depositary's stake significantly decreasing due to ADS surrenders Major Shareholders' Ownership | Name of Beneficial Owner | March 28, 2017 (%) | June 19, 2018 (%) | April 12, 2019 (%) | | :--- | :--- | :--- | :--- | | Siliconware Precision Industries Co., Ltd | 14.97% | 18.22% | 20.12% | | Depositary (for ADSs) | 42.95% | 35.36% | 13.45% | - The total number of issued and outstanding ADSs has decreased by approximately **81%** since their initial issuance in November 2016 due to holders surrendering ADSs and the 2018 Capital Reduction Plan[337](index=337&type=chunk) [Related Party Transactions](index=71&type=section&id=Related%20Party%20Transactions) The primary related party is Unimos Shanghai, a 45.02%-owned affiliate, with whom the company had technology transfer and license agreements, one of which was terminated in April 2018 - The company conducts PRC operations through Unimos Shanghai, a **45.02%**-owned affiliate, which was previously a wholly-owned subsidiary before a majority stake was sold in March 2017[392](index=392&type=chunk) - A Technology Transfer and License Agreement with Unimos Shanghai, which included a **US$1 million** license fee and a **0.5%** running royalty, was terminated in April 2018[394](index=394&type=chunk) [Financial Information](index=71&type=section&id=Item%208.%20Financial%20Information) [Dividends and Dividend Policy](index=71&type=section&id=Dividends%20and%20Dividend%20Policy) The company paid cash distributions of NT$2.09, NT$1.00, and NT$0.30 per share from 2016-2018, with a policy requiring cash dividends to be at least 10% of distributed profit Cash Distributions per Share (2016-2018) | Year | Cash Distributions per Share (NT$) | | :--- | :--- | | 2016 | 2.09 | | 2017 | 1.00 | | 2018 | 0.30 | - The company's dividend policy requires that cash dividends be at least **10%** of the total profit distributed as dividends[398](index=398&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=85&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) [Market Risks](index=85&type=section&id=Market%20Risks) The company is primarily exposed to interest rate and foreign currency exchange rate risks, with all NT$9,790 million debt at variable rates and exposure to RMB, USD, and JPY - As of December 31, 2018, **100%** of the company's **NT$9,790 million** in debt was at variable rates. A **1%** increase in interest rates would increase the annual interest charge by **NT$98 million** (**US$3 million**)[484](index=484&type=chunk) - The company has foreign currency exposure to the NT dollar, RMB, Japanese yen, and US dollar. As of December 31, 2018, a **5%** average appreciation of the NT dollar against other relevant currencies would decrease the exchange gain by **NT$204 million** (**US$7 million**)[486](index=486&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%2015.%20Controls%20and%20Procedures) [Management's Annual Report on Internal Control Over Financial Reporting](index=88&type=section&id=Management%27s%20Annual%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2018, an assessment concurred with by PricewaterhouseCoopers, Taiwan - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[497](index=497&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2018. This assessment was audited by PricewaterhouseCoopers, Taiwan[501](index=501&type=chunk)[502](index=502&type=chunk) [Corporate Governance](index=89&type=section&id=Item%2016.%20Corporate%20Governance) [Principal Accountant Fees and Services](index=89&type=section&id=Principal%20Accountant%20Fees%20and%20Services) The company paid PricewaterhouseCoopers, Taiwan, NT$19.78 million in 2018 for audit, audit-related, and tax services, with all non-audit services pre-approved by the Audit Committee Accountant Fees (2017-2018) | Fee Category | 2017 (NT$ thousand) | 2018 (NT$ thousand) | | :--- | :--- | :--- | | Audit Fees | 16,350 | 15,950 | | Audit Related Fees | 200 | 200 | | Tax Fees | 3,140 | 3,630 | | **Total** | **19,690** | **19,780** | [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](index=89&type=section&id=Purchases%20of%20Equity%20Securities%20by%20the%20Issuer%20and%20Affiliated%20Purchasers) The company completed three share repurchase programs between 2015 and 2016, buying back 50 million shares for approximately NT$1,639 million, with some shares retired and others for employee transfer - Between August 2015 and July 2016, the company completed three share repurchase programs, buying back a total of **50 million** shares[510](index=510&type=chunk)[514](index=514&type=chunk)[515](index=515&type=chunk) [Financial Statements](index=94&type=section&id=Item%2018.%20Financial%20Statements) [Notes to the Consolidated Financial Statements](index=110&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the impact of IFRS 9 and 15 adoption, segment information, 2018 capital reduction, retirement benefits, financial risk management, and the 2017 disposal of Unimos Shanghai - The company adopted IFRS 9 and IFRS 15 starting January 1, 2018. The adoption of IFRS 15 changed revenue recognition for customized services from completion-based to a progress-based model[537](index=537&type=chunk)[566](index=566&type=chunk)[805](index=805&type=chunk) - The sale of a **54.98%** stake in the Unimos Shanghai subsidiary was completed in March 2017. This resulted in the reclassification of the remaining **45.02%** stake as an 'Investment in associate' and the recognition of a **NT$1,843 million** gain on disposal of discontinued operations in 2017[677](index=677&type=chunk) - In 2018, the company executed a capital reduction of approximately **15%**, cancelling **132.9 million** ordinary shares and returning cash to shareholders[688](index=688&type=chunk) - As of December 31, 2018, the net defined benefit liability for the company's pension plan was **NT$520.8 million**[702](index=702&type=chunk)