TECO Shareholders' Meeting Approves NT$0.99 Cash-Dividend Payout
Shareholders' meeting of TECO Electric & Machinery approved on May 11 cash-dividend payout of NT$0.99 per share for 2019, higher than NT$0.90 for 2018, with payout ratio reaching 60%.
At the meeting, Sophia Chiu, chairman, pointed out that to cope with the impact of COVID-19 pandemic, the company will intensify effort to establish second supply chain for smartauto and electromechanical products outside mainland China, on top of pushing core-business growth and execution of the strategy of smart application, automation, and digitalization, adhering to the vision of "energy conservation, emission reduction, smart application, and automation," so as to maximize shareholders' benefits.
Green light for corporate proposals, rejection of capital reduction
The meeting also approved several proposals of the board of directors, including revision of the corporate charter, decrease of the number of seats on the board of directors to 7-11, down from original 15, and increase of the share of independent directors, in line with the international trend for corporate governance. The meeting agreed to the proposal of issuing preferred stock, to diversify fund-raising channel but turned down "10% capital reduction" proposed by a certain shareholder. Sophia Chiu expressed gratitude for the support of shareholders, adding that in addition to listening to shareholders' opinions as usual, the company will intensify effort for business development, raise profits, and strengthen digitalization in return.
Diversify supply sources
In view of the instability of mainland Chinese suppliers amid the pandemic, the company will reactivate supply chain in Taiwan and accelerate securing of raw materials from India, Vietnam, Europe, and the U.S. The company expected that most of the company's subsidiaries and factories worldwide will resume normal operation by June.
As for business strategy and growth plan, TECO reported that it will dedicate to the quest for the growth of electromechanical business, notably such new products as permanent magnet and auto electric machines, expand sales of solutions via the utilization of IIOT technology, provide, by its own, real-time customer services, and strengthen customer relationship to tap potential business opportunities, plus engagement in green power businesses, including PV power system, micro-grid, energy storage system, and energy management system, as well as high-performance business air conditioners.
Step up digitalization
Given the need for market and capacity diversification, TECO will set up four major production centers worldwide (mainland China, Taiwan, Vietnam, and India), alongside with introduction of automation of key processes and installation of global situation-room system, realizing comprehensive digitalized management.
TECO expressed that adhering to the development theme of "energy conservation, emission reduction, smart application, and automation," the company will intensify digital transformation, push precision marketing, expand sales to mainland China, Turkey, and India, and accelerate inroads into emerging markets, including the Middle East, the Philippines, Africa, and Russia. Based on the concept of sustainable development, the company will strive to raise revenue and profit, creating optimal investment returns for shareholders.