The 2014 THSRC Annual Meeting of Shareholders took place on Jun. 27 2014 9am. THSRC Chairman Chih-Chiang Fan hosted the meeting and BOHSR was represented by Chief Secretary Lu leading associates and financial consultants. The attendance rate of common stock shareholders was 68.31%, conforming to legal regulations.
THSRC reported one general issue (management and execution of the company), two recognition issues (2013 Recognition of Annual Operation Report and Financial Statements; 2013 Annual Deficit Recognition) and three discussion issues (partial revision to the "handling procedure of acquirement/distribution asset", "transaction procedure of derivative products" and the "NCC limit for the chairman"). All issues were unanimously approved and passed as originally proposed.
Chairman Fan reported to shareholders that growth has been stable through the 7 years of operation. Since the establishment of THSRC, fantastic teamwork has been implemented for 16 years and should be greatly acknowledged. For 2013 performance, revenue has grown 6.24% reaching 36.1 billion NT dollars. A total of 48,859 trains have been distributed during 2013 which increased 0.36% in ridership comparing to 2012. For transport amount, passenger growth was 6.65% reaching 47.49 million headcounts in 2013 and 99.38% in average punctuality rate. Moreover, there were no operational safety incidents throughout 2013.
In this meeting, many shareholders raised subjects such as to offer more promotions, to nationalized HSR business, to extend concession period and to develop station districts. Chairman Fan indicated that the accumulated deficit of HSR has reached NT$ 52.1 billion since official operation. Moreover, undergoing the redemption of preferred stock litigation, executing the time-consuming and complicated action of nationalizing HSR business to resolve the deficit will not be the best solution. Therefore, THSRC's direction of solution is to work out its fiscal problem cooperating with the government by extending the concession period and by capital reduction then expansion to balance the business to a sustainable state. Nationalizing the HSR business is currently not being taken into consideration.