Hua Nan Securities was founded in August 1988 under the name Hua Nan Securities, with its major shareholders including Yuan Ding Investment Co., Ltd., Chih Cheng Investment, Yung Ho Coal Mine, and Yi Chen Enterprising Company. Since its founding, the company has posted stable growth due to professional, steady and responsible management principles. At the outset, the brokerage’s capitalization was NT $200 million and it was only licensed to partake in securities broking. It transformed into an integrated securities company in 1990, laying the foundation for long-term development needs by initiating a comprehensive range of operations, including dealing, underwriting and bond operations. In 1992, it received approval from the Securities Exchange Commission to begin margin financing operations. In September of that year, it established Hua Nan Investment Trust. In 1993, it invested in the establishment of Hua Nan Securities Investment Consultant Co., Ltd. and the following year in Hua Nan Futures Co. Ltd. In 1995, Hua Nan’s shares began trading on the over-the-counter exchange and it changed its English name to Hua Nan Securities Co., Ltd. It also invested in Hua Nan (BVI) Holding Corp. and Hua Nan Securities (Hong Kong) Co. Ltd.
In order to strengthen its competitive standing, a special shareholders meeting was held on November 14, 2001 to approve a stock swap with Hua Nan Commercial Bank and jointly create Hua Nan Financial Holdings Company Ltd. In May 2003, the company changed its name to Hua Nan Securities. In an effort to expand market share, Hua Nan in 2003 purchased an existing brokerage fairly and transformed it into a branch in Changhua. This brought the number of branches to 41. In addition, the company has four underwriting offices. Altogether, Hua Nan Securities employs 1,336 people.
South China Insurance Co., Ltd. formally inaugurated operations on May 1, 1963, occupying an office located at No. 15 Hsinyang Street in Taipei. In September 1963, the company moved to No. 44, Section 1, Chungking South Road in Taipei. In reflection of expanding operations and the hiring of more staff, the company moved to a new building at No. 70, Section 1, Hankou Street in Taipei in April 1973. It moved again on May 17, 1986 to the fifth floor, No. 560, Section 4, Chunghsiao East Road. Operations continued to expand and the company needed even more office space. Therefore, in July 1998 it moved the headquarters’ business department to the third and fourth floors, No. 176, Section 1, Keelung Road in Taipei.
Initially, the company had only promotion and underwriting departments, and financial, administration and accounting offices. As operations grew, the company continued to add personnel to meet business needs. After various internal reorganizations, the headquarters now has the following departments: Fire Insurance, Marine Insurance, Casualty Promotion, Casualty Underwriting, Motor Underwriting, Motor Claims, Business Promotion I, Business Promotion II, Business Promotion III, Administration, Financial, Accounting, and Planning. It also has an Auditing Department, Computer Center as well as a unit focusing on internal controls and regulations. South China has seven branches throughout Taiwan in Taipei County, Taoyuan, Hsinchu, Taichung, Yuanlin, Tainan and Kaohsiung, and has 27 representative offices to provide service to all corners of Taiwan.
Over the past four decades, South China Insurance had adhered to a corporate philosophy focusing on honesty, integrity, kindness, rationality and diligence. It stresses professional, innovative and efficient operations to provide service to its customers. As the company’s capital has increased over the years, it began selling shares publicly in 1991 to strengthen organizational development, boost operational and managerial efficiency and enable the public to share in its operational achievements. In 1999, the company was granted approval to list on the stock market and did so on May 20 of that year. In light of trends in the financial industry, the need to expand the scale of operations, reduce costs and boost competitiveness, South China Insurance staged a share swap with HNFHC on August 15, 2003, which marked its entrance as a member of HNFHC. In order to provide the public more comprehensive coverage, South China is actively promoting the concept of damage prevention. By undertaking preventive measures, damages from accidents can be substantially alleviated. This concept has been quite successful. A team of highly trained professionals and a prudent management and organizational structure will continue to play important roles in achieving the goal of providing even more comprehensive service to customers.
Hua Nan Investment Trust Corp. (originally known as Hua Nan Investment Trust) was established in September 1992 with a capital of NT$300 million. In light of a changing financial environment here with the introduction of financial holding companies and in order to strengthen competitiveness, the company and HNFHC staged a share swap on August 15, 2003, which formally brought the company into HNFHC. In the future, the company will abide by the corporate spirit of working with its clients over a lifetime. In addition, the company aims to provide one-stop shopping under the HNFHC financial blueprint, providing customers with comprehensive financial services.
Hua Nan Investment Trust has adjusted its operational strategy. In the past, it focused on raising the amount of funds under management. This has given way to strengthening the structure of assets under management. The company now pursues growth both in quality and quantity and is expanding its product lines to meet the diversified needs of customers. Not including discretionary investment operations that were approved in September of 2001, as of the end of 2003, the company maintained two stock funds, two balanced funds and two bond funds. To provide better personal finance service to investors throughout Taiwan, the company has opened a Taichung branch in August 2002 and a Kaohsiung branch in October 2003. Step by step, the company has become a diversified investment management company that provides outstanding personal finance services.
K.K. Hua Nan Bank was founded in 1919 by a local entrepreneur, Mr. Lin Hsiung-cheng, and several overseas Chinese. The bank was established to serve the needs of overseas Chinese and to promote domestic and foreign investment. Lin paid visits to Xiamen, Fuchou, Shanghai, Swatow, Hong Kong, Canton, Singapore, Jakarta, Semarang and Surabaya to find investors to establish the bank. The bank was formally created on January 29 of that year and had a capitalization of 10 million yen. Lin served as the bank's first chairman and the bank's headquarters were established in Taipei at what is now No. 45 Kuanchien Road. The bank opened its doors in March and it began setting up branches abroad, in Canton, Haiphong, Saigon, Rangoon, Singapore, Semarang and Tokyo. The branches played a key role in expanding trade with neighboring countries, and business developed steadily. However, Taiwan's private banks faced troubled times in the economically lean 1930s and a round of mergers ensued. Hua Nan pulled through, and Lin served as chairman until 1944 when the bank increased capitalization. The Bank of Taiwan, holding half of Hua Nan's shares, appointed a new chairman, while Lin was honored with an even more respected position.
After Taiwan's retrocession on October 25, 1945, Lin was selected as a representative from Taiwan in the Hua Nan government. In addition, he was responsible for ensuring the continued viability of Hua Nan. A government directive on October 16, 1946 called for creating a Hua Nan Bank organizing committee. Lin headed the committee until his death just a month later. On December 12, banking authorities appointed Mr. Liu Chi-kuang to head the organizing committee. Meanwhile, the government expropriated the assets of K.K. Hua Nan from the Japanese, and these were returned to Hua Nan's organizing committee. The first shareholders' meeting of Hua Nan Commercial Bank was held on February 22, 1947, and Liu was selected chairman. The bank inaugurated operations on March 1 with a capitalization of old Taiwan $15 million. Initially, the bank focused on expanding business on Taiwan and served with other local banks in the mission of financing the construction of a new Taiwan. On May 3, the bank's shareholders agreed to merge with the Taiwan Trust Company, which then became the bank's Trust Department. Capitalization was increased to old Taiwan $25 million. Hua Nan's operations grew, creating an even more stable foundation from which to expand further. By June 1948, the bank had established more than 60 branches throughout Taiwan. Its top-quality staff further helped to expand operations, creating one of Taiwan's most stable and highly regarded commercial banks.
In 1948 Taiwan's economy began feeling the impact of economic instability on mainland China. Hua Nan realigned its business focus to maintain operational stability. It upgraded important offices to branches while closing unprofitable offices in various remote areas. In November of that year, it increased capitalization to old Taiwan $1 billion in line with revised government regulations. Taiwan's economy began to gain steam after monetary reform was instituted on June 15, 1949. Hua Nan raised its capital to New Taiwan $1.5 million and over the years has repeatedly increased capital. On May 18, 2001, its shareholders approved a proposal to further raise capita l to NT $37.091 billion, making Hua Nan one of Taiwan's most highly capitalized commercial banks.
On January 22, 1998, the government released shares in Hua Nan, completing the bank’s effort toprivatize. On November 14, 2001, in line with changes in the banking environment, the need for operational synergy, long-term development needs and in line with government policy objectives, Hua Nan and Hua Nan Securities held extraordinary shareholder meetings at which it was decided that the companies would fully convert their stock into shares of the new Hua Nan Financial Holdings Co., Ltd. Mr. Lin Ming-cheng was elected as Chairman of the Board and HNFHC’s shares were listed on the Taiwan Stock Exchange on December 19. Headquartered in Taipei, the company had a registered capital of NT $100 billion. Hua Nan Commercial Bank is a subsidiary of HNFHC. As of the end of 2002, Hua Nan Commercial Bank maintained 160 branches and 22 offices throughout Taiwan, five overseas branches and one overseas representative office. The bank employs a total of 6,199 people.