Corporate Governance

                To shareholders for your perusal:

First of all, on behalf of the Board of Directors, Chairman and the company management team would like to thank you for the great support and concern of Dimerco Express Group ever since a long time. We also appreciate you taking the time to attend the Annual General Shareholders’ Meeting. Taking this opportunity, we sincerely hope that all of you can support and urge us to continue constructing brand advantages, strengthening organization and innovating value. Dimerco Express Group staff will certainly make all-out effort to stabilize the growth of corporate performance, to reach the annual budget target, and to meet the shareholders’ expectations.

Dimerco Express Group has been continuously accelerating its global development plan. Currently, the company’s global network includes 148 offices worldwide. Dimerco Express Group provides multiple services that included both Dimerco Express (DIM) focuses on air freight services and Diversified Freight System (DFS) focuses on ocean freight services. The company coordinates the dual-brand strategy with our customized services including transportation, logistics, cargo insurance, import/export customs and inspections, domestic China transportation, cross-border road freight in Asia, Central European cross-border railway and cross-border e-commerce.

In 2016, the US economy has been gradually recovered; however, the economic development and growth are slowing down in the main markets such as China due to structural adjustment. Global economy and the fluctuations of currency exchange were becoming more unstable and unpredictable. Together with the international crude oil prices and fuel surcharge compared with the same period of last year was dropped by more than 10%, and FCL freight also simultaneously reduced. Dimerco Express Group won the award of “Airfreight Forwarder of the Year 2016” from Air Cargo Week (ACW) while we are celebrating our 45th year anniversary. Dimerco sincerely appreciate all our colleagues’ effort. Dimerco Express Group’s air tonnage increase 8% compared to the previous year, while the ocean tonnage dramatically increase 26%. The sales revenue only increased 3.9% yet the net profit after tax increased 97.1%. Dimerco’s gross profit margin increased from 15.1% in the previous year to 15.6% in 2016 by continuously optimizing operation and strengthening information system. In order to strengthen the base of future growth, Dimerco Express Group keeps investing in human resources and enhancing competitiveness leads to operating expense slightly increase 0.7% compared to the prior year. Dimerco Express Group announced 2016 full year results with a consolidated turnover of NTD 16.158 Billion that increased 3.9% compared with the prior year, net profit after tax increased 97.1% from NTD 137 Million to NTD 270 Million in 2016 and after-tax earnings per share (EPS) NTD2.20 that increased NTD 1.12 compared (EPS) NT1.08 in 2015. The broad of directors’ meeting passed a cash dividend of NTD 2.0 per share increase 96.1% compared to the cash dividend NTD1.02 in Y2015.

 

Looking forward to 2017, there is no significant improvement for concerns and obstacles of global economic development. Dimerco Express Group will continuously expand business and invest in North America, Europe, India, China and Southeast Asia. In accordance with the global strategic planning of "Greater China economic region as the mother market”, Dimerco Express Group used organizational capabilities to integrate sales and customer service throughout the combat team to develop new business and keep the business with the e-commence supplier such as Jing dong Mall and Alibaba's business. Prospecting our overall turnover will be able to grow in the nearly future.

In order to integrate the continuous line services of international transportation and logistics services, Dimerco Express Group developed a system called “eCall Freight System®” which can strengthen front end trucks calling, pick-up and delivery services since the beginning of 2015. By operating this program, Dimerco can unify both data stream and information flow with local logistics partners. Furthermore, Dimerco Express Group will create big data base to improve the safety of cargo freight and maximize the operation efficiency and the service quality.

Dimerco Express Group is a leading international transportation and logistics company that has been providing professional services for more than 40 years based on a corporate culture of strong ethics and customer commitment. Dimerco Express Group will continue to expand its business by following the globalization concept, i.e. network globalization, product diversification and operation localization.

Through this continued innovation, the company was granted two patents (US and Taiwan) based on the Dimerco Value Plus System and Method©.  Dimerco Value Plus system version 3.0 (based on Web 3.0) had been launched gradually in Q4, 2016:

1. U.S. and Taiwan Patent: "Consolidation Yield Management System and Method©". This system specializes in optimizing operations, increasing the efficiency of integrating all transportation systems, strengthening cargo consolidation functions and achieving environmental standards by preventing resource waste. The system also helps to increase consolidated cargo yields and minimize cargo damage.

2. U.S. and Taiwan Patent: “Data Synchronization Method©” This method can effectively combine all data uploaded to a server system from all Dimerco subsidiaries worldwide and store the data in a central database. The corporation can then use a business intelligence tool with reporting features to provide accurate data reports requested by global customers in real time.

As a leader in China, Dimerco Express Group has steadily expanded our service network since the company entered the China market since 1991. Dimerco has established 77 offices in China as of 2016. Furthermore, we won the accolade of “China Well-known Trademark” by the Trademark Office of the State Administration for Industry and Commerce of the People’s Republic of China.

Facing the era of the internet and the internet of Things (IoT) is coming; Dimerco Express Group can manage a global marketing service network and have the ability to manage information and data while providing B2B cross-border logistics services. Utilizing Dimerco Value Plus System version 2.0 (based on Web 2.0), a service platform that combines international logistics management, sales, operations, finance and other services, Dimerco Express Group can provide a high-quality comprehensive solution for clients. The real-time centralized information system can improve internal management and external integration capabilities which in turn enhances the value of customers' service in supply chain management.

According to the rapid development of the internet, Dimerco Express Group will rely on Dimerco Value Plus System version 3.0 (based on Web 3.0) to create more opportunities. Furthermore, Dimerco Express Group can provide global, diversified, and highly efficient international logistics services through the Internet and IoT integrated strategic platform,

Dimerco Express Corporation’s achievements and future developments to this day are all rely on all shareholders’ support. To elevate the interests of our shareholders, Dimerco Express Group will remain committed to construct mechanisms of generations and constantly improve the structure and sound management.

Thank you!

 

 

Mr. Edward Lin

Chief Executive Officer

Dimerco Express Corporation

Dimerco Express Group

Date: June 8th, 2017