Q&A for Stockholders

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Q&A

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. 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 KGI 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/special reserve appropriated, the remaining earnings will be distributed as follows:
  1. Preferred stock dividends at 14% of the par value.
  2. Common stock dividends at no more than 14% of the par value.
  3. 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.

How have dividends been appropriated in recent years?

The dividends have been appropriated as follows:
Year
Cash dividends per share
Stock dividends per share
2022
Common share NT$1.0
Preferred share NT$1.4
None
2021
Common share NT$3.1
Preferred share NT$3.1
None
2020
Common share NT$0.3
Preferred share NT$1.4
None
2019
Common share NT$0.5
Preferred share NT$1.4
None
2018
Common share NT$1.0
Preferred share NT$1.4
None
2017
Common share NT$0.88
Preferred share NT$1.4
None
2016
Common share NT$0.85
Preferred share NT$1.4
None
2015
Common share NT$0.5
Preferred share NT$1.4
None
2014
Common share NT$1.0
Preferred share NT$1.4
None
2013
Common share NT$0.7
Preferred share NT$1.2
NT$0.2
2012
Common share NT$0.4
Preferred share NT$1.3
NT$0.1
2011
Common share NT$1.01
Preferred share NT$1.25
NT$0.15
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 will be/was the 2024 Annual Shareholders' Meeting held?

Annual General Meeting of Shareholders for year 2024 will be held on June 19, 2024.

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. According to tax regulations, CSC will mail the receipts of the dividends of the previous year to shareholders before February 10 every year.

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 by end of January, 2024.

The top 10 Shareholders of CSC

2023.12.31

  Shareholders Total Share Owned Ownership(%)
1 Ministry of Economic Affairs (MOEA) 3,154,709,357 20.00%
2 Employee’s Stock Trust of China Steel Corporation 381,457,535 2.42%
3 Transglory Investment Corporation 256,765,331 1.63%
4 Cathay Sustainability High Dividend ETF 217,199,000 1.38%
5 Fubon Life Insurance Co, Ltd. 214,601,000 1.36%
6 Chunghwa Post Co., Ltd. 183,434,000 1.16%
7 Labor Retirement Fund 175,248,134 1.11%
8 Vanguard Emerging Markets Stock Index Fund 170,396,308 1.08%
9 Vanguard Total International Stock Index Fund 165,032,247 1.05%
10 Labor Pension Fund 162,936,279 1.03%

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 the end of January 2024, a total of 133,436,904 units of 633,752 units (12,675,350 common shares) is in circulation. They represent 0.08% of the total shares.

What is the implementation of CSC's share buyback program?

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 (0.0014% of total outstanding shares) have been purchased by the company during that period at NT$24.7 per share. Later, these shares were transferred to employees in September 2007.
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 (0.86% of total outstanding shares) were purchased during the period at NT$23.24 per share. Later, these shares were transferred to employees in October 2009.
The members of the board resolved on November 3, 2023 to implement a share buyback program of 150,000,000 CSC common shares from November 6, 2023 to January 5, 2024 at prices between NT$16.98 and NT$37.26 per share for the purpose of share transfer to CSC employees.

What are CSC's consolidated financial results for Twelve months Ended December 31, 2024?

The operating revenues totaled NT$363.33 billion; pre-tax profit: NT$4.59 billion; earnings per share: NT$0.11; book value per share: NT$19.41.

What are CSC group's ratio of debt ratio(debt/asset), current ratio, and net profit margin?

As of February 29th, 2024, according to CSC's Reviewed financial report, debt ratio (debt/asset) 49.58%, current ratio 117.67%, and net profit margin 0.97%.

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

In 2023, CSC has issued unsecured corporate bond, with fair value totaling 11 billion NTD. Thus far, CSC has issued accumulating amount of NTD 225.4 billion. As of the end of January 2024, the unpaid balance of the corporate bond is NTD 47.4 billion.

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

As of December 31st, 2024, 47.62% of CSC's total steel products were for export. The percentage breakdown by area is as follows:

Europe
27.20%
South East Asia
26.91%
Japan
15.79%
Mainland China (including Hong Kong)
10.15%
Others
19.95%
Total
100.00%

  • What are the differences in terms of rights and obligations between shareholders of preferred stock and those of common stock?
  • How can preferred stock be converted into common stock?
  • What are CSC's dividend policies?
  • How have dividends been appropriated in recent years?
  • When will be/was the 2024 Annual Shareholders' Meeting held?
  • Should shareholders pay income tax on their dividends?
  • What percentage of shares does the Ministry of Economic Affairs, CSC's largest shareholder own?
  • The top 10 Shareholders of CSC
  • What is the condition of the releases of Global Depository Receipts(GDR)?
  • What is the implementation of CSC's share buyback program?
  • What are CSC's consolidated financial results for Twelve months Ended December 31, 2024?
  • What are CSC group's ratio of debt ratio(debt/asset), current ratio, and net profit margin?
  • How many times has CSC issued its corporate bonds, and what is the accumulated amount?
  • What is the percentage of CSC's exported steel products and its percentage breakdown by area?