Business Performance
Financial Performance
In 2022, the global economy encountered various challenges, such as the Russia-Ukraine War, Federal Reserve interest rate hikes, high inflation, and China’s regulatory measures. Consequently, major economies worldwide witnessed a slowdown in growth or even contraction, resulting in a global economic growth rate of only 3.4%. Despite these multiple challenges, HIWIN achieved a consolidated net income of US$954.41 million, net profit of US$140.35 million, and net profit per share of US$0.42 in 2022. For further details regarding HIWIN’s business performance and financial information, please refer to the 2022 Annual Report.
HIWIN’s dividend policy adheres to the Company’s articles and legal regulations regarding the annual distribution of earnings. The dividend distributions for the years 2020-2022 are as follows:
Remuneration and benefits encompass various employee expenses, such as salaries, labor and health insurance premiums, pension costs, and other employment-related expenditures (including food expenses, employee benefits, training fees, and group insurance premiums, among others).
Tax Management
(1) Tax Policy and Principle
As a global member of the community, HIWIN adheres to the principles of continuous innovation and sustainable business practices. We prioritize information transparency and sustainable development, and we fulfill our social responsibilities in the regions where we operate. In our main operational countries, we fulfill our fair tax obligations and support government initiatives for tax incentives, thereby promoting local economic growth and contributing to the advancement of industries and innovation. In line with our commitment to sustainable development, HIWIN adopts prudent and reasonable principles’ in tax management. Our tax policies and guidelines encompass the following items:
(2) Tax Governance and Risk Management
The Finance Section oversees the daily tax administration and management of HIWIN, with qualified and experienced personnel assisting the accounting supervisor in fulfilling tax obligations. We also engage professional tax consulting agencies to enhance our professional knowledge and assist with tax matters. Our internal audit unit conducts internal control checks to ensure compliance with the internal control system and legal requirements for accounting, tax, and financial reporting processes.
Changes in tax laws and regulations can potentially impact our operational activities. HIWIN is primarily regulated by the tax laws of the Republic of China government. To mitigate this tax risk, we closely monitor domestic and foreign policies and laws that may affect our finances. We collect information, analyze potential tax impacts, and develop countermeasures.
In line with international trends in tax governance, HIWIN adheres to tax regulations and pursues sustainable development. We comply with tax laws and regulations for declaration and payment, with each subsidiary within the group appointing its own accountant to review and verify tax matters. After verification, tax matters are reported according to internal hierarchical responsibility levels. The Finance Section serves as the tax management unit, ensuring that tax personnel adhere to internal operating procedures and tax regulations. They handle routine tax declaration and payments, provisional tax declaration, annual tax declaration and payment, as well as various types of income declaration in accordance with regulations. In the event of significant tax matters, the section reports to the Board of Directors as necessary.
(3) Tax Information
The tax information for HIWIN, including its subsidiaries and sub-subsidiaries, over the past three years is as follows. For more detailed information on corporate income tax, please consult the 2022 Annual Report.