Wiwynn Corporation (6669) 2020 Annual Shareholders’ Meeting

Taipei, June 15, 2020 – Wiwynn Corporation (hereinafter, “the Company”, TWSE Stock code: 6669) today held its 2020 Annual Shareholders’ Meeting at 9:00am at The Chang Yung-Fa Foundation International Convention Center (No. 11, Zhongshan South Road, Zhongzheng District, Taipei City, Taiwan, R.O.C.) The meeting is hosted by Simon Lin, the Chairman. In the meeting, 2019 Business Report and Financial Statements are acknowledged, a resolution on the cash dividends distribution of NT$23 per share is passed, and the Company’s Fourth-Term Board of Directors (including Independent Directors) are elected.

Summary:

• For the year 2019, consolidated revenue was NT$163.6 billion, which decreased by 9.65% year-over-year. The net profit after tax was NT$6.17 billion, which increased by 10.61% year-over-year. The after-tax profit margin was 3.77%, increased by 0.69 percentage points. The basic earnings per share (EPS) was NT$36.42 and the return on equity (ROE) was 39.81%. The decrease in EPS and ROE compared with the year 2018 was mainly due to the capital increase in March 2019 for listing on the Taiwan Stock Exchange.
• In addition to the increasing profitability, the overall financial structure has also been gradually improved. The debt ratio decreased from 88% in 2017 to 62% in 2018, and then slightly decreased to 58% in 2019.
• Passed a resolution on the distribution of profit. Cash dividends distribute to common shareholders is NT$4,021,131,193, as NT$23 per share. Cash dividends will be rounded down to the nearest NT$1.
• The Company’s Fourth-Term Board of Directors (including Independent Directors) are elected. Five elected Directors include Wistron Corporation Representative: Simon Lin, Emily Hong, Wistron Corporation Representative: Frank Lin, Sunlai Chang, and Steven Lu. Four elected Independent Directors include Simon Dzeng, Charles Kau, Cathy Han, and Victor Cheng. The term of service is from June 15, 2020 to June 14, 2023.

Outlook and Prospect:

• Looking forward, we will continue to enhance core competitiveness of products, and strengthen research and development capability. As 2020 is the first year of 5G, we believe 5G, AI and edge computing as the future industry trends and will drive the overall application of cloud industry, big data and IoT. We are currently actively devoting resources and seeking cooperation with potential customers, establishing stable partnerships and providing the best solutions, to develop our second growth curve and proceed to a vigorous future with our shareholders.
• The COVID-19 pandemic has caused many uncertainties in 2020 and made us experience the rapidly changing world. We must maintain high operational flexibility and vigilance at all times, while protecting our employees’ health and safety as the first priority. At the same time, we have to quickly respond to the crisis caused by shortage of supply chain, insufficient production capacity and negative impact of international logistics. We are seeing first half of 2020 full of challenges. The overall supply chain has been turning stable from May. We see no significant changes in demand for the whole year. Compare to first half of 2020, we are expecting a growth in the second half. Overall, 2020 will also show a growth compare to the previous year.
• We have also seen the rapid growth of applications such as Stay-at-Home economy, video conferences, distance education, and Work From Home. We believe this could still be the new normal even in the post-pandemic era, and it will bring continuous growth momentum for cloud datacenter.

Please see attached Meeting Handbook of Shareholders’ Meeting for reference.