What are the differences in terms of rights and obligations between shareholders of preferred stock and those of common stock?
Shareholders with preferred stock are entitled to receive an annual dividend at the stipulated rate of 14% based on the face value of a share preferentially over that of common shareholders ,and they are also entitled to participate distribution of unappropriated retained earnings. They have preferential payment of dividends in arrears in the succeeding year. Their rights to vote, to be elected, to participate distribution of residual properties are the same as those of the common shareholders; however, they don't have the right to vote in the elections of board of directors or supervisors. Besides the aforementioned differences, their rights and obligations in all the other areas are the same.
How can preferred stock be converted into common stock?
Shareholders may take their preferred stock to Grand Cathay Securities Corporation, CSC's agent, to apply for the conversion. The whole process may take up to two weeks to be fully completed.
What are CSC's dividend policies?

After all the accounts are settled, taxes paid, deficits offset, and the legal reserve appropriated, the remaining earnings will be distributed as follows:

  • (1) Preferred stock dividends at 14% of the par value.
  • (2) Remunerations to directors and supervisors of the board at 0.15 % of the distributable earnings, 8% as bonuses to CSC employees.
  • (3) Common stock dividends at 14% of the par value.
  • (4) The rest of the remaining earnings will be appropriated proportionally to the preferred stockholders and common stockholders as bonuses.
If it is necessary, a special reserve will be allotted according to the resolution of the board, and it will be distributed to the stockholders of the preferred stock in the event when there aren¡¦t enough earnings for distribution.
Since CSC is currently in its prime, not less than 75% of the aforementioned earnings and bonuses will be distributed as cash dividends, and not more than 25% as stock dividends in principle. To meet CSC¡¦s capital demand for development and operation, we reserve the right to adjust the percentage of cash dividends.
How have dividends been appropriated in recent years?

The dividends have been appropriated as follows:

Year

Cash dividends per share

Stock dividends per share

2010

NT$1.99

NT$0.50

2009

Common share NT$1.01
Preferred share NT$1.07

NT$0.33

2008

NT$1.30

NT$0.43

2007

NT$3.50

NT$0.3

2006

NT$2.78

NT$0.3

2005

NT$3.75

NT$0.35

2004

NT$3.9

NT$0.5

2003

NT$3.0

NT$0.35

2002

NT$1.4

NT$0.15

2001

Common share NT$0.80
Preferred share NT$1.20

NT$0.20

2000

NT$1.5

NT$0.3

1999

NT$1.3

NT$0.2

1998 and the second half of 1997,a transitional period

NT$2.5

NT$0.5

When was the 2011 Annual Shareholders' Meeting held¡H
Annual General Meeting of Shareholders for year 2011 was held on June 15, 2011.
Should shareholders pay income tax on their dividends?
Shareholders who are R.O.C. citizens should include the dividend income in their taxable income for tax filing purposes. The filing amount is the total of net dividends plus deductibles. According to tax regulations, CSC will mail the receipts of the dividends of the previous year to shareholders before February 10 every year.

The rate of imputation credit account of 2011 (for the purpose of filing 2012 individual tax return for individual income) is 11.52%.
What percentage of shares does the Ministry of Economic Affairs, CSC's largest shareholder own?
The Ministry of Economic Affairs (MOEA) holds 20.00% of the total shares as of the end of September 30th, 2011.
What is the condition of the releases of Global Depository Receipts(GDR)?
One unit of GDR equals to 20 common shares. CSC has issued GDR three times in accordance with the request of MOEA to release CSC stock.
Besides, CSC offered 38,183,400 units of GDR (763,668,000 common shares) through capital injection by new share issue on August, 2011.
As of October 30th, 2011, a total of 133,315,501 units of GDR (2,666,310,271common shares) have been issued, and a remaining sum of 3,543,894 units (70,878,151common shares) is in circulation. They represent 0.47% of the total shares.
What is the implementation of CSC's share buyback program¡H

The members of the board resolved on August 28, 2001 to implement a share buyback program of 150,000,000 CSC common shares (representing 1.65%) of the total shares, between September 3, 2001 and November 2, 2001 at the prices between NT$8.4 per share and NT$19 per share for the purpose of share transfer to CSC employees. When the price of the stock fell below NT$8.4 per share, more shares would be purchased. All of 150,000,000 CSC common shares have been purchased by the company (averaged at NT$12.7 per share) during that period and transferred to employee in January 2003.

The members of the board resolved on December 20, 2005 to implement a share buyback program of 200,000,000 CSC common shares between Dec 21, 2005 and Feb 20, 2006 at the prices between NT$16.8 per share and NT$37.9 per share for the purpose of share transfer to CSC employees. 1,600,000 CSC common shares have been purchased by the company during that period. The average price was NT$24.7 and this shares buyback accounts for 0.8% of total outstanding shares.

The members of the board resolved on October 7, 2008 to implement a share buyback program of 300,000,000 CSC common shares from October 8, 2008 to December 8, 2008 at prices between NT$21.18 and NT$52.67 per share for the purpose of share transfer to CSC employees.

108,000,000 CSC common shares were purchased during the period. The average price was NT$23.24 and these shares account for 0.86% of total outstanding shares.

What are CSC's financial results for the first three quarters of 2011?

The operating revenues totaled NT$182.01 billion; pre-tax earnings: NT$22.71 billion; pre-tax earnings per share: NT$1.61

What are CSC's ratio of stockholders¡¦ equity to total assets, debt ratio(debt/net value), current ratio, and book value per share¡H

As of September 30th , 2011, according to CSC¡¦s reviewed financial report, the ratio of stockholders' equity to total assets was 68.76%, debt ratio 45.42%, current ratio 172.80%, and book value of NT$18.86 per share.

How many times has CSC issued its corporate bonds, and what is the accumulated amount?

In 2008, CSC has issued two terms of unsecured corporate bonds, with fair value of 9.6 billion NTD and 20 billion NTD, respectively. Thus far, CSC has issued fifteen terms of corporate bonds, and the accumulating amount is NTD 108.4 billion. As of September 30th , 2011, the unpaid balance of the corporate bond is NTD 35.2 billion.

What is the percentage of CSC's exported steel products and its percentage breakdown by area?

As of September 30th , 2011, 29.93% of CSC's total steel products were for export. The percentage breakdown by area is as follows:
Hong Kong(including Mainland China)
30.64%
Japan
24.86%
South East Asia

26.34%

Others
18.16%
Total
100.0%