2019-10-04
To explain about the media reports regarding the Company's related personnel were indicted for Air Pollution case
Regarding the media reports on October 4, 2019, the prosecution is based on the same air pollution case which happened on September 11, 2018.
Ever since the incident, THC has been punished three times by several authorities due to THE SAME AIR POLLUTION CASE,
of which the air pollution control facilities in our label converting plant didn't reach the standards of regulations, and the emission amounts were underreported.
Related punishments are the followings,
(1) In November 2018, Taichung Environment Protection Bureau fined NTD 20 million of violating Air Pollution Protection Act.
(2) In May 2019, regarding to the quartly underreported emission fees from 2013/Q3 to 2018/Q2, Taichung Environment Protection Bureau fined NTD 126 million, doubling the fees as a penalty.
(3) In September 2019, THC received another legal notification from the office of the Taichung District Prosecutors, requesting us to pay air pollution fee for a total of NTD 77 million, due to the underreported emission fees from 2010/Q4 to 2018/Q2.
◎Consequently, the above penalty amounts have risen the doubt of the overlapped payments by the same cause in the 2nd and 3rd points. Certainly THC has delegated the attorney to progress in related deliberation and legal remedy.
(4) Regarding to the corporate criminal liability, THC and its chairman, general manager and related personnels, 19 in total, were indicted by Taichung District Prosecutors Office on October 4, 2019.
IMPROVEMENTS:
Since this case happened, THC has completely remedied all the deficiencies and related procedures, making sure that all the processes are compliance with the latest regulations. We promise that it won't happen anymore.
Moreover, our improvement plan has been reviewed and confirmed by Taichung Environment Protection Bureau.
THC has invested NTD 70 million in establishing VOC system and purchasing new air pollution control equipment.
In the future, we will persistently carry out environmental protection policy in full compliance with the laws, by the best of our capacity. In order to strengthen the internal training courses in every plants, promptly updating related regulations, and fully implementing procedures related to the latest environmental protection, occupational safety, and environmental sanitation laws, the Company has recruited several Environmental Specialists, hired external consultants with professional and practical experience, and outsourcing environmental consultant company for our future daily operations.
FINANCIAL:
This year, THC has actively expanded and carried out various measures of "increase income and decrease expenditure.
” The performence in China and S.E Asia are getting better than before, and the profits reach beyond the expectation of our yearly forecast.
Therefore, this case would not affect the company's business operations and financials in the short term and long run.
After this incident, THC will be more vigilant for and dedicated to any Environment, Sustainability and Governance issue occurs, and we are more than happy to receive any suggestion and idea from our stakeholders as well.
